The Indian equity markets have seen explosive growth over the last decade, fuelled by a vibrant startup ecosystem, robust policy overhaul and massive investments in infrastructure. However, as uncertainties return to global markets triggered by a near paralysis in global trade, equities have taken a massive hit. This has reignited the conversation on the need to protect investor return and wealth by incorporating fixed income securities, such as fixed deposits and bonds, in their portfolios.
Recognising this shift in the investment environment, digital platforms today offer curated investment baskets to balance your portfolios by giving you exposure to not only equities but a plethora of debt or fixed income instruments. Stock Holding Corporation of India, offers access to a basket of investment instruments, which serves as a one-stop solution for portfolio diversification needs. On offer are government-backed schemes such as the National Pension System (NPS) as well as Floating Rate Savings Bonds (FRSBs), mutual funds and corporate bonds.
Why is this important? After the US imposed massive reciprocal tariffs on its biggest trading partners, including India, the Indian equity market, similar to its global counterparts, went into an acute and sustained downward spiral and has since experienced heightened volatility, prompting investors to seek more stable investment avenues. With equities taking a dive, investors veered towards the only safe haven—debt or fixed income securities.
The need of the hour then is to temper the growth that equities provide with the stability and predictability that fixed income securities offer.
The fact that the Indian market regulator sees debt assets as a critical component of any portfolio and wants to popularise it is evident from the Securities and Exchange Board of India’s (SEBI) decision to reduce the minimum investment threshold in privately placed bonds to Rs 10,000.
The decline of fixed deposits as the sole safe haven
For the average Indian investor, debt instruments mean fixed deposits. Fixed deposits have been the poster child for safe, risk-free returns for decades. However, while FDs are safe, their returns manage to even out with inflation, making wealth creation difficult.
As investors seek alternatives that offer stability without compromising returns, other fixed income assets such as bonds, FRSBs, and hybrid modes, including mutual funds and the National Pension System (NPS), have stepped in as a viable solution, making diversification a key strategy for investment.
NPS, a retirement corpus with access to different asset classes
In times of market volatility, NPS stands out as a government-backed retirement solution that offers Indian investors a stable avenue for portfolio diversification. This tax-efficient pension programme allows you to systematically build a retirement corpus while offering exposure to different asset classes, including equities, corporate bonds, and government securities.
The scheme’s multi-tiered investment approach lets you customise your asset allocation based on your risk appetite, with conservative investors able to increase their fixed income exposure for stability during turbulent market conditions.
The National Pension System offers two accounts to investors—Tier 1 and Tier 2. Tier 1 accounts are mandatory for investors, and it has a minimum contribution of Rs 500. The main attraction of Tier 1 accounts is the tax savings that they offer to their investors. Investors availing the scheme can claim tax savings up to Rs 1.5 lakhs under section 80CCD. Tier 2 accounts are voluntary and offer no tax savings benefits. Unlike Tier 1 accounts, the minimum contribution that investors have to make for Tier 2 accounts is Rs 1000.
As a stand-alone Point of Presence (POP) in the NPS architecture, Stock Holding Corporation of India Ltd (StockHolding) offers expert guidance in selecting the most suitable Pension Fund Manager and Annuity Service Provider.
Mutual funds, weathering market volatility
Mutual funds offer retail investors a straightforward path to diversification during uncertain market conditions, combining professional expertise with accessibility. These investment vehicles pool money from multiple investors to create portfolios managed by financial experts who make the complex decisions about when and where to invest.
What makes mutual funds especially valuable for weathering volatility is their ability to offer customised risk profiles to match your comfort level. Conservative hybrid funds with higher debt allocations can provide stability when equity markets fluctuate, while still offering better potential returns than pure fixed-income options.
Meanwhile, the systematic investment plan (SIP) approach allows you to invest small amounts regularly, taking advantage of market dips through rupee-cost averaging. This disciplined method helps build wealth steadily while potentially reducing the anxiety of trying to time unpredictable market movements.
The bond market renaissance
StockHolding offers various fixed-income products like FDs, NCDs, Secondary market bonds which enables investors to evaluate options that align with their personal tax profile, return expectations, and liquidity needs.
Floating Rate Savings Bonds, 2020 (Taxable)
Reserve Bank of India’s Floating Rate Savings Bonds, 2020, (Taxable) are government-backed securities that feature interest rates that adjust periodically based on prevailing market rates, providing a natural hedge against inflation and interest rate fluctuations. With no investment cap and a seven-year tenure, these bonds are ideal for those seeking stability.
For the average investor concerned about market volatility, these bonds offer the dual benefit of capital preservation with the potential for increasing returns when interest rates rise—a valuable characteristic during times of sustained market volatility. The interest rate of the bond would be re-set at half yearly intervals i.e. 01st Jan and 01st July and will be linked with the prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
Floating Rate Savings Bonds offer an accessible investment option, with a modest entry point of just Rs 1,000 and no ceiling on maximum investment—making them suitable for both small savers and those with substantial capital.
As more investors realise the importance of structured portfolio allocation, investment will no longer be just about equities but about a balanced, strategic mix of financial instruments designed for long-term success.
Visit StockHolding for more details.
Recognising this shift in the investment environment, digital platforms today offer curated investment baskets to balance your portfolios by giving you exposure to not only equities but a plethora of debt or fixed income instruments. Stock Holding Corporation of India, offers access to a basket of investment instruments, which serves as a one-stop solution for portfolio diversification needs. On offer are government-backed schemes such as the National Pension System (NPS) as well as Floating Rate Savings Bonds (FRSBs), mutual funds and corporate bonds.
Why is this important? After the US imposed massive reciprocal tariffs on its biggest trading partners, including India, the Indian equity market, similar to its global counterparts, went into an acute and sustained downward spiral and has since experienced heightened volatility, prompting investors to seek more stable investment avenues. With equities taking a dive, investors veered towards the only safe haven—debt or fixed income securities.
The need of the hour then is to temper the growth that equities provide with the stability and predictability that fixed income securities offer.
The fact that the Indian market regulator sees debt assets as a critical component of any portfolio and wants to popularise it is evident from the Securities and Exchange Board of India’s (SEBI) decision to reduce the minimum investment threshold in privately placed bonds to Rs 10,000.
The decline of fixed deposits as the sole safe haven
For the average Indian investor, debt instruments mean fixed deposits. Fixed deposits have been the poster child for safe, risk-free returns for decades. However, while FDs are safe, their returns manage to even out with inflation, making wealth creation difficult.
As investors seek alternatives that offer stability without compromising returns, other fixed income assets such as bonds, FRSBs, and hybrid modes, including mutual funds and the National Pension System (NPS), have stepped in as a viable solution, making diversification a key strategy for investment.
NPS, a retirement corpus with access to different asset classes
In times of market volatility, NPS stands out as a government-backed retirement solution that offers Indian investors a stable avenue for portfolio diversification. This tax-efficient pension programme allows you to systematically build a retirement corpus while offering exposure to different asset classes, including equities, corporate bonds, and government securities.
The scheme’s multi-tiered investment approach lets you customise your asset allocation based on your risk appetite, with conservative investors able to increase their fixed income exposure for stability during turbulent market conditions.
The National Pension System offers two accounts to investors—Tier 1 and Tier 2. Tier 1 accounts are mandatory for investors, and it has a minimum contribution of Rs 500. The main attraction of Tier 1 accounts is the tax savings that they offer to their investors. Investors availing the scheme can claim tax savings up to Rs 1.5 lakhs under section 80CCD. Tier 2 accounts are voluntary and offer no tax savings benefits. Unlike Tier 1 accounts, the minimum contribution that investors have to make for Tier 2 accounts is Rs 1000.
As a stand-alone Point of Presence (POP) in the NPS architecture, Stock Holding Corporation of India Ltd (StockHolding) offers expert guidance in selecting the most suitable Pension Fund Manager and Annuity Service Provider.
Mutual funds, weathering market volatility
Mutual funds offer retail investors a straightforward path to diversification during uncertain market conditions, combining professional expertise with accessibility. These investment vehicles pool money from multiple investors to create portfolios managed by financial experts who make the complex decisions about when and where to invest.
What makes mutual funds especially valuable for weathering volatility is their ability to offer customised risk profiles to match your comfort level. Conservative hybrid funds with higher debt allocations can provide stability when equity markets fluctuate, while still offering better potential returns than pure fixed-income options.
Meanwhile, the systematic investment plan (SIP) approach allows you to invest small amounts regularly, taking advantage of market dips through rupee-cost averaging. This disciplined method helps build wealth steadily while potentially reducing the anxiety of trying to time unpredictable market movements.
The bond market renaissance
StockHolding offers various fixed-income products like FDs, NCDs, Secondary market bonds which enables investors to evaluate options that align with their personal tax profile, return expectations, and liquidity needs.
Floating Rate Savings Bonds, 2020 (Taxable)
Reserve Bank of India’s Floating Rate Savings Bonds, 2020, (Taxable) are government-backed securities that feature interest rates that adjust periodically based on prevailing market rates, providing a natural hedge against inflation and interest rate fluctuations. With no investment cap and a seven-year tenure, these bonds are ideal for those seeking stability.
For the average investor concerned about market volatility, these bonds offer the dual benefit of capital preservation with the potential for increasing returns when interest rates rise—a valuable characteristic during times of sustained market volatility. The interest rate of the bond would be re-set at half yearly intervals i.e. 01st Jan and 01st July and will be linked with the prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
Floating Rate Savings Bonds offer an accessible investment option, with a modest entry point of just Rs 1,000 and no ceiling on maximum investment—making them suitable for both small savers and those with substantial capital.
As more investors realise the importance of structured portfolio allocation, investment will no longer be just about equities but about a balanced, strategic mix of financial instruments designed for long-term success.
Visit StockHolding for more details.
(This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@timesinternet.in)