Mutual fund investment strategy: Amid hawkish Reserve Bank of India (RBI) on interest rate hike, mutual fund investors are busy guessing about its impact on their return. According to tax and investment experts, such rate hike regime may impact equity mutual funds return in short term period, say 6 months to two years. However, for long term equity mutual fund investors, it won’t have much impact on their return as markets would pare its losses in medium to long term. Experts said that short term investors, who have time horizon for 6 months to two years, should invest in debt mutual funds, especially in liquid, money market and bond funds. They said that such funds are expected to generate 0.50 to 1 per cent more from their current annual average return.