In a falling yield scenario, long maturity bonds make a better investment compared to hold-to-maturity products such as fixed deposit or fixed maturity plans.
Mahesh Patil of Birla Sun Life AMC analyses on CNBC-TV18 that rate-sensitive sectors constitute one of the key themes for the year as interest rates are to fall in the medium-to-long term and growth is set to recover on continued liquidity levels and positive corporate earnings.
If Indian investors were looking out for some cushioning to play the market today, they got it in the form of a 50 basis point Cash Reserve Ratio (CRR) cut, courtesy the RBI.
Mahesh Patil of Birla Sun Life AMC recommends investing in rate sensitive sector due to interest rates peeking out.