Reliance Mutual’s Nivesh Lakshya: Generating long term returns from debt in a falling interest rate scenario

We all seek a portfolio that gives us greater returns, a sense of financial security and help in achieving our financial goals, especially when interest rates are declining globally. There’s no rocket science to it; all it requires is disciplined investing and judicious asset allocation.

Over the last 3-4 years, the spectacular rise in share prices has led to equities being the most talked about asset class. Now that the stock market is going through a prolonged phase of volatility, it could be a good idea to have some debt in the portfolio.

As interest rates have fallen from 11-12 percent to 6.5-7 percent over the past decade, Reliance Nivesh Lakshya helps you to lock in the current interest rate at 8 percent over the long term.

The fund invests in government securities and you can gain from the falling interest rates, if you hold till maturity, for 25-30 years you may gain 8%. The Reliance Nivesh Lakshya has no minimum lock-in period, which is helpful in case you want to  withdraw your money in the event of an emergency.