Should I shift my investments when interest rates rise?
-
If rising interest rates can boost my debt fund returns while dragging down my equity portfolio, should I adjust my allocation based on these cycles, or should I keep my risk profile fixed regardless of short-term market movements?
-
When interest rates go up in India, it’s a smart time to check your investments. Debt funds often yield better returns, while stocks might become a bit bumpy.
However, don’t rush into changes just because the market is moving. Only adjust your investments if it aligns with your long-term plan. Shifting slightly toward safer options can be helpful right now, but keep your main strategy steady so you don’t miss out when the market bounces back.