Axis AMC's Devang Shah Favours 3-5 Year Corporate Bonds
· Business · Economic Times
Fixed-income investors should shift their strategy from aggressive duration bets to quality and carry, according to Devang Shah, Head of Fixed Income at Axis AMC. Shah recommends focusing on the 3-5 year segment, specifically high-quality corporate bonds and select state development loans, while maintaining a neutral stance on long-duration government securities. This outlook follows the Reserve Bank of India's decision to keep the repo rate unchanged at 5.25% with a neutral policy stance. Shah suggests that investors should prioritise current risk-reward metrics over attempting to time interest-rate fluctuations. He anticipates that any future rate-hiking cycle will likely be shallow, with no more than 75 basis points of additional hikes expected.
Why it matters
The shift toward quality and carry strategies provides a roadmap for Indian retail and institutional investors to navigate a stable interest rate environment while managing credit risk. This approach helps investors balance yield generation with capital preservation as the RBI maintains its current monetary policy.
Read the original report — Economic Times
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