RBI rate hike risk rises: Bandhan AMC’s Suyash Choudhary dials back duration in bond portfolios
Economic Times 1d ago·29 Aug 2026, 5:54 am
The Reserve Bank of India (RBI) is widely expected to raise interest rates in the near future, a move that typically causes bond prices to fall. In response, Bandhan Asset Management Company has adjusted its strategy by reducing the duration of its bond portfolios. This means the funds are holding investments with shorter maturities, which helps protect them from sudden spikes in interest rates.
For investors, this shift is a defensive move. By dialing back duration, Bandhan AMC aims to limit volatility in its bond funds. It is a proactive step to manage risk as the market anticipates higher borrowing costs. This adjustment helps stabilize returns for investors even if the central bank decides to hike rates.
Investors should watch the upcoming Monetary Policy Committee (MPC) meetings closely. Any clear signals from the RBI regarding rate hikes will be crucial. Additionally, the behavior of foreign currency non-resident (FCNR) deposits and the overall shape of the yield curve will determine how bond funds perform in the coming months.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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