How to readjust your fixed income allocations
Returns from debt products are on a decline. While bridging that gap in the overall portfolio, be aware of the additional risk that other options could bring in
Fixed deposit rates, bond yields, and debenture coupons have fallen; small savings rates are being reset lower; and duration-linked returns for debt mutual funds have declined. There is hardly any room for your fixed income allocation to be able to deliver the 8%-plus kind of annual returns you may have seen 18-24 months ago.