It’s Time To Add Debt In Your Portfolio And Practice Asset Allocation

Globally, several of the advanced economies is going through a tough phase with inflation being at multi-decadal high and fears of an impending recession ratting the financial markets. Already, several of the central bankers have tightened interest rates to curb inflation and India is no exception. Thus far this financial year, the Reserve Bank of India (RBI) has increased rates by nearly 150 basis points while a further hike of 50 bps cannot be ruled out. At such a juncture, as an investor it is time to take necessary actions to keep your investment on track. There are expectations that equities are likely to remain volatile in the near to medium term with a downward bias. Therefore, a portfolio highly concentrated in equity-related instruments may not be a prudent choice at the current juncture. So, it is time to balance out your investment and practice the evergreen asset allocation...