What is Implied Yield in Mutual Funds (especially Debt Funds)?

In Debt Mutual Funds, Yield to Maturity (YTM) is shown for the fund portfolio. It represents the average return from the debt instruments held, assuming they are held to maturity.

However, actual returns may vary due to:

• Mark-to-market (MTM) fluctuations
• Changes in interest rates
• Credit events (downgrades or defaults)