Use floating rate funds to rake in the hikes

One of the strategies which present a compelling case for investment is the floating rate fund. This is because of its inherent nature to adjust to rising interest rates and coupons which accrue to investors as the benchmark/overall RBI rates move higher. Since floating rate securities have a positive correlation with rising interest rates, it provides the much-required necessary cushion to the portfolio.

Use floating rate funds to rake in the hikes
One of the strategies which present a compelling case for investment is the floating rate fund. This is because of its inherent nature to adjust to rising interest rates and coupons which accrue to investors as the benchmark/overall RBI rates move higher. Since floating rate securities have a positive correlation with rising interest rates, it provides the much-required necessary cushion to the portfolio.