Should I move into government bonds now or wait?
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Should I start moving some of my portfolio into government bonds right now, or is it too risky given the current interest rate cycle? I’m torn between beginning my allocation today to lock in yields or just sitting tight until the RBI's policy direction feels more certain.
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I totally understand the confusion. Since rates are near their peak, trying to time the market perfectly is really tough. Rather than waiting for the "perfect" time, consider gradually putting your money into government bonds or gilt funds via an SIP.
This way, you can average out the returns and lower your risk. If rates drop, you win; if they rise, you can simply buy more. Don't miss out by staying on the sidelines.