A negative return on fixed income can be devastating, says Dhirendra Kumar, CEO of Value Research. Which means investors should err on the side of caution, he tells ETNow.
Edited excerpts:
ETNow: Is it time now to rebalance your portfolios, allocate more towards fixed income and may be eat out of equity?
Dhirendra Kumar: The reasons why investor should be investing in fixed income are primarily two. One is the money you are likely to need in 2-3 years should be in fixed income and for a non negotiable goal you should not take any chances with. So, your emergency money, money to be consumed in foreseeable immediate future should be in fixed income. That is not dependent on any circumstances.
