Going The Fixed Income Way

I can’t really say how the stirring inflation vs growth fight that the Reserve Bank is fighting will turn out, but its impact on different types of debt mutual funds will certainly be important. When the general direction of interest rates shifts, then fixed income investors and the fund managers who run these funds change their approach to investing. This shift is happening right now and anyone interested in fixed income investing should understand what is happening and why. The RBI has clearly said that interest rates are now on their way down, even though they haven’t yet started doing so. This has led to a redrawing of the basic landscape of fixed-income investing. At this juncture, the response of fixed income issuers and investment managers is dri

This article was originally published on December 19, 2011.