Inflation has crossed 12 per cent. Interest rates are rising. Individuals with
home loans are struggling to cope with the higher equated monthly
instalments (EMIs) and simultaneously deal with inflation.
In the stock market, the bulls are constrained by concerns over the macroeconomic
scenario domestically, the grim global scenario, persistent foreign
institutional investor (FII) outflows and the possibility of another round of
monetary tightening. That does not mean the bears have a free hand. The correction
in commodities, especially crude, provides ample ammunition for the
bulls to conduct a short-term rally.
Investors who flocked to gold as the 'safe asset' were disappointed at the way
the price dropped in August. Real estate rates too have dropped and by all indications
will continue to fall. No asset seems to be a safe haven anymore.
The only asset that beckons is debt with interest rates rising. But would it
make sense for an investor to move into debt? While this is a good time to
reassess one's portfolio, it would not be wise to simply rush to income funds,
Fixed Maturity Plans (FMPs) or fixed deposits. Read on to figure out how to
make the best in such a bleak market environment.
Text and illustrations: 
Also read: Financial planning: Importance of your involvement
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