With the US-Israel-Iran conflict rattling markets, oil prices rising and risk assets under pressure, fixed income tends to regain appeal. In India, it is still often viewed as a conservative space dominated by bank fixed deposits and small savings schemes. But access is widening through RBI Retail Direct, online bond platforms and broker terminals. Fixed income today is not just about earning interest; returns also depend on how portfolios are positioned across interest-rate cycles and credit risk. Here, we explain the main strategies and what retail investors can take away from them.

Accrual strategy

The accrual strategy is essentially a buy-and-hold approach in bonds. Investors hold securities until maturity to earn steady interest…