The Reserve Bank of India (RBI), in its sixth bi-monthly policy, kept the key rates unchanged on Wednesday. However, fund managers expect that investors will benefit from investing in medium to short term funds. With some global uncertainty, investors can also look at investing into dynamic bonds funds and fixed maturity plans (FMPs), say fund managers. Since the start of rate cut cycle, RBI has cut repo rate down by 175 basis points (100 basis points = 1%) to 6.25%. Suresh Soni, CEO at DHFL Pramerica Asset Manager Private Ltd, said: \u201cDecision to keep rate unchanged in the policy meeting and move towards neutral stand is a meaningful move. Majority of the markets was expecting rate cuts and therefore reaction is little sharper than we usually see post monetary policy. Very clearly this stance takes any rate cut possibility off the table. I think for the next six months or so, we should not expect any rate cuts. From the rate cut continuation we are probably in a long pause of the current rate cutting cycle.\u201d Also Watch: [jwplayer 4JJETFBk] On Wednesday, 10-year benchmark government securities (G-Sec) closed at 6.74%. \u201cGiven the current situation we see pause in cut in interest rates going forward. In this scenario we are advising debt fund investors to invest around 85% in accrual funds or short term funds and remaining in long only funds,\u201d said Lakshmi Iyer, chief investment officer (debt) & head of products, Kotak Mutual Fund. She also added that, 10-year yield will come down in the range of 6.45% by the next six-eight months. The prices of fixed income securities are governed by interest rates prevailing in the markets. Interest rates and price of fixed income securities are inversely proportional. When interest rates decline, the prices of fixed income securities increase. Similarly, when there is hike in interest rates, the prices of fixed income securities come down. Some industry players also think that, investing in FMPs can be also looked by investors at this point of time. \u201cSince G-sec yields rose sharply today and are likely to remain at current levels, even locking in money in FMPs will be beneficial for investors. Even accrual funds can be looked by investors as this funds are recommended during the volatile times and we believe uncertainty will prevail in markets for some time,\u201d said a debt fund manager from a top fund house.