First time in history, RBI hiked Interest Rates when CPI is below repo rates. This shows that RBI will keep interest rate higher for a longer period than we expect. Inflation is very sticky so it makes RBI's (SKD and team) job tough.
Take aways from an Investment point of view:
Fixed income/debt funds look very attractive to park your money (Short Term) as well as for Investments. Rate card for you with Time horizon.
| Fund | Return | Horizon |
| Liquid funds | 6% plus | 6 to7 Months |
| Low duration Fund | 7% plus | 6 Months plus |
| Short term bond | 8.50% Plus | 2 to 3 Yrs |
| Equity savings fund | 10% | 3 to 5 Yrs |
| Balanced Advantage fund | 10 % Plus | 5 yrs Plus |
Invest /park your money for good rates. It will give you peace of mind as there's no locking period and no volatality.
Rates will move up and remain high for next 2 years. It's a great opportunity to grab as rates (Above inflation) are 2% so believe you should focus on fixed Income funds.
