Five money-making instruments in a rising interest-rate environment

While each of these instruments can fetch you better returns, you must watch out for the risks they carry and avoid excessive exposure to any of them

The Reserve Bank of India (RBI) recently hiked the repo rate to 6.50 per cent. Even after two successive rate hikes, economists expect that there may be more in the future and the trend of rising rates may continue for another 12-18 months. While rising rates will hurt borrowers, fixed-income investors stand to benefit. However, they must invest in the right products and exercise some precautions.
 
Fixed deposits (FDs): Rates offered by this perennial favourite of conservative investors are on the upswing. The State Bank of India hiked its retail deposit rates recently (the one year rate is now