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ETMarkets Smart Talk | Have ₹1 crore for 3 years? Puneet Pal’s fixed-income playbook
Economic Times 1 hr ago·18 Aug 2026, 2:20 am
With interest rates currently high, investors holding large sums for three years face a dilemma. Puneet Pal, Head of Fixed Income at PGIM India Mutual Fund, suggests avoiding long-duration bonds that lock in current yields. Instead, he advises staying nimble and waiting for the rate cycle to evolve, which could present better opportunities.
This approach matters because long-duration bonds are highly sensitive to interest rate changes. If rates fall, the value of these bonds could drop significantly. By staying flexible, investors can potentially capture higher yields later without being stuck with lower returns. It is a strategy focused on maximizing returns over the long term while managing risk.
What to watch next is the movement of key policy rates and inflation data. These factors will determine when the rate cycle might turn. Investors should keep an eye on these indicators to decide when to adjust their fixed-income portfolios for optimal growth.
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