With a residual term of at least four to five years, investors could see good returns as G-sec yields are expected to decline in the future.
There is a risk that if the war continues and crude prices along with inflation rise significantly, G-sec yields may increase further.
India's 10-year G-sec is currently around 7.1%, nearing a one-year high and up nearly 100 basis points. The five-year high stands at approximately 7.5%.
The next one to two months may present a favorable opportunity to invest in bonds, assuming the war concludes.
@SD94791979 Though Index is hardly 10% down from highs, broader markets, most mid and smallcap are still down 30-40%. So still big opportunity to invest.
If you have plans to increase your investments, now may be an opportune time. Markets are currently down, and with the resolution between the US and Iran, there is an expectation for markets to rise significantly.
NIFTY 50 EPS has gone up from 1000 in 2024 to 1140 in 2026. So with same NIFTY50 is flat at 22331, we are significantly cheaper. Next year EPS of ~1300 we are at 17.5x PE.
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