How can one approach 3-month, 12-month investments after repo rate hike?
After the RBI raised the repo rate by 25 bps to 5.50%, investors with a three-month investment horizon could consider money market instruments, which have limited interest-rate sensitivity. Those with a 12-month investment horizon could consider corporate bond or PSU funds which may offer low volatility. One with an 18-month horizon could consider gilt, dynamic bond and maturity funds.
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