An NCD's credit rating will tell you whether risk possibility is high or low. Instruments rated below AA are regarded as high-risk.
'They can transition from short to long-duration funds when the yield curve normalises.'
Investors not comfortable investing directly may take the mutual fund route, where they get exposure to a diversified portfolio of bonds.
If you are buying a bond to cater to your regular income needs, check the interest distribution schedule.
After the Franklin Templeton episode, investor confidence has been shaken. Known brands have become more relevant to investors, as long as this psychological impact lasts.
Despite the current bout of volatility, debt-oriented hybrid funds remain well suited for risk-averse investors.
