You are here: Home » PF » Features » Entrepreneurs
;
Business Standard

Income fund investors need to tread carefully

After Urjit Patel's appointment as RBI governor-designate, the bond market witnessed a sell-off, as it became evident that there won't be any significant change in stance

Hemant Rustagi 

With an average annualised return of 10 per cent, income fund investors have had a couple of good years. However, considering that Consumer Price Index-based inflation is currently closer to the upper end of the Reserve Bank of India's (RBI's) target and the new governor is likely to continue to keep a focus on inflation, we might not see an interest rate cut any time soon.

It may be recalled that after Raghuram Rajan's decision to quit RBI, the bond market witnessed a smart rally on expectations that the new governor might cut rates faster. However, as became evident after the ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, August 28 2016. 22:23 IST