Win Over Market Volatility Using Debt


Bangalore: With the country’s economy on complete turmoil, there can be many things which can affect your fixed-income portfolio directly. After there was an indication by the U.S. Federal Reserve that the spurring measures will soon be wrapped up, most of the global investors have started to flee their debt investments, relieving bonds and driving up bond yields, reports Priya Nair & Yogini Joglekar of Business Standard.

Investors who were expecting rate cuts by investing in long-term debt funds or gilt funds are feeling abandoned as RBI decided not to cut repo rates despite market hopes. As rupee is not yet at a stable position and further depreciation could compel up inflation, the actual position for an interest rate cut is still blur.

Hence, all these are strong indication that you should review your investing policy of putting funds in long-term bond funds and re-consider on the basics of debt investing.

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