fixed income investors should opt for long tenure fixed deposits and dynamic bond funds say experts after the reserve bank of indias rbi policy announcement the central bank cut repo rates by 25 basis points to 725 and kept the cash reserve ratio unchanged at 4 it is unlikely that banks will lower interest rates on fixed deposits however given that we are in falling rate scenario investors should lock themselves into longer tenure bank deposits says anup bhaiya md and ceo money honey financial services as for further rate cuts experts feel the central bank will wait and watch before cutting rates any further if the declining trend in commodity prices continues and we have a good monsoon it will give room to the central bank to cut rates by another 25 basis points in june says mahendra kumar jajoo ed and cio fixed income pramerica mutual fund he advises debt mutual fund investors to invest in dynamic bond funds dynamic bond funds give flexibility to move into shorttermlongterm instruments depending upon the fund managers outlook on interest rates birla dynamic bond fund idfc dynamic bond fund reliance dynamic bond fund and pramerica dynamic bond fund are some of the funds that fall in this category