Move quickly and lock into current small-saving rates wherever you can

However, do so only if your asset allocation requires you to invest more on the debt side, and you are comfortable with the long lock-in

The slashing of interest rates on small-savings instruments, and then the overnight reversal of the decision, has left investors bewildered. It has also led many to believe that the respite may only be temporary.       

Cuts are likely: Most experts, too, believe it is only a matter of time before small-savings instruments’ above-market returns are pruned. Says Ankur Maheshwari, chief executive officer, Equirus Wealth Management: “The government wants lower interest rates within the economy. The existing rates have been retained for only a quarter, so they may be reconsidered once that period is over, or a little later.”

The Shyamala