However, if making fresh investments, they advise a time horizon of at least one year.
Experts say a section of the market was pleasantly surprised with the increase of only 25 basis points on key policy rates. Ramkumar K, senior vice president -- fixed income, Sundaram BNP Paribas Mutual Fund, said: "Some people expected a 50 basis points hike. So, a lesser hike has been a pleasant surprise for them."
For investors in debt funds, experts do not see much impact immediately.
Ramanathan K, head - fixed income and structured products, ING Investment Management, said: "In the short term, there will not be much impact.
Investors in all types of debt funds can stay put for sometime." There are expectations that one-year returns from debt funds could range between 7 and 9 per cent.
Others feel returns from ultra short-term schemes (liquid-plus) could improve slightly. In case of short-term (six months) schemes, there may not be a major impact.
As far as bond yields are concerned, it is expected that yields will depreciate to 8.15-8.20 per cent for 10-year Government of India bonds by the next quarter.
In the second half of this year, though, yields may rally to touch 7.75-8 per cent. As a result, medium-term (one year) debt funds will gain.
"Debt fund investors should have a minimum one-year horizon," added Ramkumar.
For those looking at fresh investments in medium-term funds, fund managers suggest staggering it over the next three-four months.
"There is no reason to get into long-term funds of over 3-4 years because the interest rates may not have peaked," said an industry expert.
For investment in fixed deposits, experts believe this may not be the right time for long-term deposits. With an investment horizon of one year, one may lock-in money at the current rates.
But they advise waiting before investing in longer tenure deposits like three-five years, as interest rates may go up further, pushing up deposit rates.
Most expect a further increase of 50-100 basis points, which will improve returns of fixed deposits.