Sensex bleeding, gold volatile amid US-Iran war: Time to opt for good old FDs?
Every crisis reminds us that markets can swing like a pendulum between greed and fear. (AI image) Fixed Income: No One-Size-Fits All Fixed deposits remain
Every crisis reminds us that markets can swing like a pendulum between greed and fear. (AI image) Fixed Income: No One-Size-Fits All Fixed deposits remain relevant for conservative investors who want certainty, simplicity and capital protection over shorter horizons. They work well for emergency funds, near-term goals and investors who prioritise predictability over tax efficiency. Government bonds and gilt funds can become attractive when yields are reasonable and inflation appears to be stabilising.
These are better suited for investors with a medium-term horizon who can tolerate interim mark-to-market volatility, Karkera says. Corporate bond funds look relatively constructive where portfolios are focused on high-quality issuers. Accrual yields are healthy and India’s corporate balance sheet environment remains reasonably strong. The emphasis, however, should remain on credit quality rather than yield maximisation, the expert says. Money market funds and short-duration funds are suitable for investors seeking liquidity, moderate stability and potentially better post-tax outcomes than idle balances in savings accounts.
For investors in higher tax brackets, arbitrage funds have become increasingly relevant. They offer relatively low volatility and benefit from equity taxation, making them useful for parking money where the investment horizon and risk profile are appropriate. Small savings schemes continue to appeal to conservative households because of sovereign backing, stable rates and familiarity. They are particularly useful for retirement-oriented or income-focused investors. Fixed income: Factors you shouldn’t miss What should your portfolio strategy be?
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
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