Stories
India's Fixed-Income Landscape Evolves: Bonds, FDs, and Alternatives in Focus
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CNBC TV18•02-10-2026, 16:45
India's Fixed-Income Landscape Evolves: Bonds, FDs, and Alternatives in Focus
- •India's fixed-income market is evolving with higher bond yields attracting investors and a shift towards alternatives for better returns.
- •Fund managers at the Morningstar Investment Conference 2026 highlight opportunities in fixed income but caution against market timing, emphasizing matching investments with time horizons.
- •The 10-year government bond yield has risen to 7.18% from 6.15%, offering attractive entry points for investors, though immediate capital gains may not materialize.
- •A Per Annum survey found 52% of FD investors moved a portion of their corpus to alternatives for higher yields, with 35% considering P2P lending.
- •The evolving landscape offers diverse choices, but investors must consider liquidity, credit, market, and capital risks across deposits, bonds, and alternative products.
Key Questions Answered
According to Axis Mutual Fund's Head of Fixed Income Devang Shah, the 10-year government bond yield rose from about 6.15% in June 2025 to approximately 7.18% by the time of the 2026 conference.
A 2026 online survey by alternative investment platform Per Annum found that 52% of respondents moved a portion of their FD corpus into alternative investments for higher yields, while 35% viewed P2P lending as an additional allocation and 13% prioritized safety by keeping most funds in FDs.
Sunaina Da Cunha stated that elevated crude oil prices could cause the rate-hike cycle to last longer, prompting her to prefer liquid, money-market, and very short-duration funds while eyeing opportunities in two- to three-year corporate bonds.
