'Expect RBI to cut rates by at least 50 basis points'

A certified chartered accountant and a company secretary, Deepak Agrawal began his career in research and dealing with Kotak Mutual Fund in 2002, and then moved to fund management in 2006. Now, with over two decades of experience at the AMC, he is the Chief Investment Officer-Debt, overseeing 12 schemes. In a recent interview with Value Research, Agrawal discussed the likelihood of interest rate cuts in the US and India, noting, "India is likely to cut rates in the second half of this year and over the next year." He also elaborates on his strategy for positioning Kotak Mahindra Dynamic Bond Fund to benefit from such expected rate cuts and shares his debt fund recommendations for investors. Below is the edited transcript. What drew you to fixed income instead of equity? I am a Chartered Accountant (CA). After passing the intermediate exams, one can continue with audit work or pursue industrial training in a manufacturing or service industry. Since I also aspired to be in investment banking, fund management, or even the treasury of a corporate house, I took up Kotak Mutual Fund as an assignment during my industrial training. Meanwhile, I was pursuing a master's degree in business administration (MBA), and a position in the fund management team within the fixed-income department was available. In the early 2000s, there were limited opportunities in the fixed-income sector, so I seized the chance to join the fixed-income team at a fund house. I can proudly say that I have seen the fixed income market right from the nascent stage, and we grew together. Over time, I learned the tricks of the trade and understood the nuances of the market with real-time experiences. As they say, handling crisis is the best teacher; over the years, I've seen multiple crises, like the global financial crisis, the currency crisis triggered by the famous taper tantrum of the Fed and the Covid-19 pandemic crisis. All these crises had different implications. My entry into fixed income was accidental, but the journey has been exciting and rewarding. What's your core i