Bonds look more attractive than equities in the current macro cycle, says Sahil Kapoor, Market Strategist and Head of Products at DSP Mutual Fund, which managed $23.55 billion as of September 30, 2025. He cited high real yields, slowing nominal growth, pressure on dollar inflows, and the relative value emerging in large-cap IT and broader large caps.

Kapoor noted that the 10-year government bond yield has rallied to about 6.65%, providing strong real returns. India’s real yield stands near 5.4%, though he pointed out this is inflated because "the last six months consumer price index (CPI) is about 1.5%." Even after adjusting for core inflation below 4%, he said the G-sec offers "2.5% or more in terms of real rates," which he finds attractive.

Real gross domestic product (GDP) growth rema

See Full Page