Debt wish: Maximising returns through strategic rotation
After a sharp rally in the equities market this year, investors could be better off rotating some funds towards the debt market. Experts believe several tailwinds could spur bond market returns over the next 12–18 months. These include India’s robust macroeconomics, declining inflation, and the imminent passive flows of close to Rs 2.5 trillion on account of domestic sovereign bonds getting included in the JP Morgan global indices. Additionally, a study by Axis Mutual Fund shows that debt outperforms most other asset classes following a period of longer interest rate hikes. The 10-year