Allocate 20-30% to long-duration debt funds, enter with 6 to 8 years period

Even when investing solely for capital gains, stay flexible and extend investment horizon if required

Financial markets are in a buoyant mood after the recent US Federal Reserve (Fed) meeting indicated three cuts in policy interest rates in 2024. This development has instilled a sense of optimism among market participants. The Fed’s signal comes after it hiked policy rates by 525 basis points to tame inflationary pressures. On its part, the Reserve Bank of India (RBI) has raised policy rates by 250 basis points in its recent rate-hike cycle. The US Fed’s impending rate cuts are expected to have an impact on the RBI’s actions and bond yields in India.  

“The rate trajectory in the