Opportunities in long-term bonds, but no big rally ahead: Devang Shah

Investors should focus on short-to-medium bonds and quality corporate debt as RBI nears the end of its rate cut cycle, says Shah

Investors must focus on shorter-duration bonds and mutual funds (MF) to balance risks and rewards as the Reserve Bank of India (RBI) completes its rate cut cycle, said Devang Shah, head, fixed income, Axis Mutual Fund. Shah, in an email interview with Abhishek Kumar, explained why he has increased his exposure to corporate and medium-duration bonds. Edited excerpts:

 

How will the US Federal Reserve’s rate cut and commentary impact Indian markets? Are more rate cuts likely in India?

 

The Fed’s rate cut was expected, and its guidance for two more cuts aligns with market expectations. On the domestic front, we