{
  "id": 11214294,
  "title": "India’s fund managers turn to fixed income as rate cycle shifts",
  "url": "https://urgent.news/2026/10/01/indias-fund-managers-turn-to-fixed-income-as-rate-cycle-shifts",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T14:17:52.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/indias-fund-managers-turn-to-fixed-income-as-rate-cycle-shifts/article71532826.ece"
  },
  "original_language": "en",
  "account": "Fixed income investments are gaining popularity among Indian fund managers as the country's economic landscape shifts. At the Morningstar Investment Conference 2026, experts highlighted the potential of this asset class, citing a favorable entry point driven by rising yields and robust corporate credit.\n\nDevang Shah, Head of Fixed Income at Axis Mutual Fund, remarked that current entry levels are \"very, very good.\" However, he cautioned that investors may not witness significant capital gains in the near term. Shah suggested that adding duration to portfolios could be appropriate once the initial rate hikes are implemented, provided the economic cycle does not deteriorate further than anticipated.\n\nSunaina Da Cunha, Co-CIO (Debt) at Aditya Birla Sun Life AMC, currently favors liquid and short-duration funds. She indicated a shift towards 2–3 year corporate bonds once market volatility subsides. Da Cunha observed that corporate bond spreads for bonds with maturities up to five years appear attractive, thanks to the improved balance sheets of companies that had deleveraged during the previous rate cycle.\n\nManish Banthia, CIO of Fixed Income at ICICI Prudential AMC, pointed out a global trend of shifting investments from equities to bonds. However, he expressed concern over India's relatively shallow corporate bond market. Banthia noted that structural issues, such as inefficient taxation, deter retail investors from investing in non-AAA corporate bonds, thereby limiting the market's potential.\n\nAll three fund managers emphasized the importance of adhering to the principle of matching the investment horizon to the duration of the funds. They stressed that asset allocation remains crucial, and market timing should be avoided. The managers collectively agreed that aligning investment strategies with the economic cycle and maintaining a balanced portfolio would yield better long-term results.",
  "summary": "Fund managers at the Morningstar Investment Conference 2026 discussed bond yields, corporate credit, fund duration, asset allocation and market volatility.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Reserve Bank of India",
        "title": "Rate of Interest on Government of India Floating Rate Bond 2028",
        "url": "https://urgent.news/2026/10/01/rate-of-interest-on-government-of-india-floating-rate-bond-2028",
        "published": "2026-10-01T12:44:52.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}