Now is a great time to invest in Indian fixed income says Saurav Ghosh. Here’s why
invest in Indian fixed income, according to Saurav Ghosh, a fixed income expert and co-founder of Jiraaf. In an interaction with ET Markets, Ghosh stated that he sees a strong opportunity for investors to lock in attractive yields ahead of anticipated rate cuts by the Reserve Bank of India (RBI).
“Right now is a great time to invest in Indian fixed income given that equity markets are obviously highly-highly volatile. Right now global economic markets both because of the US is obviously very-very uncertain, so Indian fixed income with its stability is a great asset class to have in your investment portfolio,” he said.
So what should investors do?
Ghosh believes that investors should capitalize on this window by taking exposure to longer-duration government securities (G-Secs) and State Development Loans (SDLs), which offer low credit risk and attractive yields.
“Given the rate cut is expected, it is quite, I would say, opportunistic right now to take longer duration exposures at the moment,” he said.
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For investors seeking flexibility, dynamic bond funds present an excellent opportunity, as fund managers can actively adjust their portfolios based on evolving interest rate trends.
For those with a moderate risk appetite, Ghosh recommends AAA and AA-rated corporate bonds with a duration of 24-36 months, which he sees as a good wealth creation opportunity.
“If you lock-in rates right now with rate cuts again expected, it is a good time to participate in corporate bonds,” he advised. The appeal of