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Three-five-year gilts are attractive in current times, say experts

For tax-efficient exposure, go for TMFs maturing in 2026-2028

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Photo: Shutterstock

Sarbajeet K Sen
The Reserve Bank of India (RBI) has hiked the repo rate by 190 basis points this year but banks have not revised their fixed deposit (FDs) rates upwards by a similar amount. The bond market, on the other hand, has responded faster to RBI rate hikes. Currently, a one-year fixed deposit (FD) from the State Bank of India is offering 5.6 per cent. 364-day treasury bills (t-bills), on the other hand, are yielding around 6.9 per cent.

“At present, we have a unique investment opportunity where sovereign assets are yielding better returns than other conventional fixed-income investments,” says Dhawal Dalal,

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First Published: Oct 21 2022 | 7:40 PM IST

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