G-SECS to Corp Bonds: LGT Wealth's Chirag doshi selects the top four fixed income assets to buy now | Einsmark news

Global Pulse: The global economy runs in early 2025 with a straw. In the US, the first quarter surprised the markets with a light GDP subtraction of 0.3% – a rare dip driven by a poor demand, but by a boom in imports before new trading rates. Businesses got up before the costs rose, and accidentally blew up the trade deficit and dragged into the red. Inflation nevertheless offered some relief, with the relief from April to 2.3% – a sign that the Fed’s Tightrope can pay off, although slow. Across the Atlantic Ocean, the UK has the gloom with a strong GDP growth of 0.7% in the first quarter of a sharp setback in business investment – the fastest in two years. Europe is also surprised by the upside, with the eurozone expanding 0.4% for the quarter, doubling its previous pace. Together, these data points paint a picture of a world that is not yet out of the forest, but to adapt in real time. India: A bag of stability amid global churns India still shines as an outlier. April-VPI has ensured to a six-month low of 3.16%, which provides ease to the Reserve Bank of India (RBI), which recently switched to a neutral policy. This enables the central bank to remain flexible while it is a vigilant for risk development. The economy remains strong, with GDP expected to grow by 6.8% in FY25, supported by resilient consumption, strong service exports and improved investment momentum. This combination of moderation of inflation and steady growth creates a rare, attractive background for investors with fixed income. Warning without alarm while macroeconomic fundamentals are encouraging, allowing the local geopolitical environment to justify cautious monitoring. Recent flames along the Border of India-Pakistan have raised concerns about possible disruptions, especially in the run-up to state elections. Historically, short-term escalations have planted and had a temporary impact on the Indian bond markets, especially if it does not substantially affect oil prices or trade. However, if the tension escalates significantly, risk sentiment and foreign fund flow can have short volatility. At the moment, the situation remains contained, and the bond market has shown resilience. However, investors must take into account geopolitical option by maintaining liquidity and staying diversified over time and credit buckets. Fixed revenue strategy The developing background supports a tactical yet confident fixed income approach: 1. Expand the duration, gradually, the RBI’s neutral attitude and falling inflation create space for yields to drive lower, especially to the medium to longer end of the curve. G-SECs in the 5-10 year space are compelling from a transport and roll-off perspective. 2. Credit opportunities: Carefully improve the yield, it is a favorable environment that spreads forcredit – but only with the necessary caution. Attractive segments include: Top-rated NBFCs and HFCs with solid balance sheets and grain breeding books. Mid-level issuers provide an improved return through properly structured NCDs with asset backups or cash flow escrows. Credit-enhanced structures such as guarantee-backed or cash fluid effects receive investor confidence. However, it is not the market to chase returns blindly. Avoid names that leverage or those with opaque promoter history. 3.. Preserve liquidity and remain smooth with elections, progress of the monsoon and possible geopolitical noise ahead, with 10-15% liquidity within portfolios is wise. It provides the flexibility to take advantage of disruptions or policy surprises. What to consider buying? G-SECS (5-10 years): Low credit risk returns. State Development Loans (SDLs): Higher distribution over G-SECs with minimal downgrading risk. AAA Corporate Effects: Consistent Capital Conservation Artists. Choose high quality NCDs: best acquired by managed platforms and professional wealth managers for diversification and supervision. Prospects before the domestic background remain constructive, with steady growth, inflation mitigation and the RBI that creates room for flexible policy. However, global uncertainty and local geopolitical developments can cause short -term volatility. At this time, investors must stay high in quality, maintain cash and make the duration of the next few months work in their favor. Fixed revenue portfolios that are now built-nicered and consciously will probably be well rewarded in the quarters. The author, Chirag doshi, is the CIO at LGT Wealth India. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.