To earn higher interest income, you have to take some measured risks

For fixed-income investors, this is undoubtedly good news, as interest rates will go up. Banks like State Bank of India, ICICI Bank, HDFC Bank and others are slowing raising deposit rates

Interest rates in India are on the upswing. The benchmark 10-year G-Sec bond yield is up around 81 basis points over the past year. Currently, it stands at 7.77 per cent. And, there are expectations that yields would harden further in the second half of the year because the central government’s borrowing programme has been pushed back. As a result, borrowing will be higher in the second half of the year. State governments, too, are also likely to borrow heavily. Given that 2019 general elections are fast approaching, there could also be some surprise expenses from the government.
 
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