Russia-Ukraine crisis: Investors are seeking refuge in fixed-income options

RBI's floating rate bond is a safe and long-duration product you may enter into at present

The equity market has turned volatile and may remain so in the short run due to the Russia-Ukraine war and the resultant supply chain disruptions and spike in commodity prices. The next round of volatility is expected to begin once the US Federal Reserve starts quantitative tightening. Many investors are, hence, seeking refuge in fixed-income options.

Rates may rise
Interest rates are likely to rise due to high inflation. “Inflationary expectations have become entrenched in the economy and will not go away in a hurry,” says Sandeep Bagla, chief executive officer, Trust Mutual Fund. Prices of a range of