Why fixed income remains a portfolio stabiliser during uncertain times

Fixed income acts as a portfolio stabiliser during geopolitical shocks, El Niño risks, and shifting policy signals, according to Harsha Vardhana VM, Founder and Group CEO of Atom Financial Services.

Bonds provide contractual coupon payments and principal repayment, reducing volatility compared to equities, says Vineet Agrawal, Co-founder of Jiraaf.

Jiraaf recommends a diversified bond portfolio across G-Secs, AAA and AA-rated bonds, plus selective exposure to A and BBB-rated investment-grade bonds, diversified by issuer, sector, and maturity.

Shorter-duration bonds are advised to limit mark-to-market volatility amid rising crude prices and inflation, per Harsimran Sahni, EVP and Head of Treasury at Anand Rathi Global Finance.