Locking a return on a bond fund



Well explained and summarized by William Baldwin about bond investments (bullet vs perpetual). Depending on the objective and flexibility required, investors choose between zero rated treasuries and coupon yielding bonds. Our outlook- Fixed income markets face challenges from rising interest ( market risk) and credit quality (credit risks). European markets are on track to stop quantitative easing and proceed with rate hikes in the near future. With investment grade yielding low returns, and high yield bonds carrying credit risks, market warrants limited exposure to fixed income products for making investments. Indian bond markets would welcome the new appoint of RBI governor Shaktikanta Das who is expected to maintain/reduce interest rates considering inflation is well controlled.