Fixed-income investors are coping with the rate cut season

Fixed-income investors should try to lock in to the best rates that are still available

The Reserve Bank of India (RBI) recently cut its repo rate to six per cent. Bank fixed deposit (FD) rates have been declining for some time and the latest cut could soon be transmitted by banks to their FD rates. On July 31, State Bank of India (SBI), the country's largest bank, had reduced the rate on its savings deposit from four per cent to 3.5 per cent. In this falling-rate scenario, conservative fixed income investors and retirees, either in their 40s or post-60, need to rejig their investment strategies to stem the fall in their portfolio returns. 

Will rates go