These bonds typically offer returns equivalent to or slightly higher than Fixed Deposits (FDs), with the added advantage of the governments sovereign guarantee.
Over the long term, returns need to be generated in a disciplined and cost-effective way; otherwise, they could evaporate. So, it’s important to find a balance between cost and returns.
Look for spikes in bond yields to shift from short-term debt funds to long-term debt funds. If you wish to invest in fixed deposits, prevailing rates are attractive. Do not chase yields as it may indicate higher credit risk.