Debt fund opportunities – the category that’s at a low

The headlines now are devoted to sliding equity markets and stock opportunities to ‘buy the dip’. But that’s not the only window of opportunity to make the most of a correction. With the hike in repo rates earlier this month and a clear path now for higher rates, debt markets too offer scope for timely investments.

Four passive debt funds to invest right now

Not so long ago, if debt investors in India wanted to get a 7% plus return, they had to go to post office schemes with (poor service and) a long lock-in period like the PPF or GOI Floating Rate Savings Bonds with a 7-year lock-in period. These options, apart from the difficulty of accessing them, required investors to sacrifice liquidity for returns. 

2 safe options to earn 7.4%

India’s market interest rates have been rising very swiftly after the recent mid-cycle rate hike by the RBI.  In our earlier analysis we had highlighted that bonds issued by the Central and State governments should now be your first choice as and when primary auctions crop up, as they offer the best combination of low risks with high yields currently. 

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