• Opportune time for investing in Indian debt market
With moderating Inflation as well as GDP growth and expectations for interest rate easing cycle to follow, current higher debt yields look attractive.

• The advantage of State Development Loans (SDLs)
SDLs are bonds issued by state governments and facilitated by RBI. Their sovereign rating with a provision to be served from central government’s allocation to states, lends them high quality. Thus, they are akin to G-secs while still offering higher yields than G-secs.

• SDL yields open up investing opportunity
SDL curve looks attractive till the 5-year point as better spreads over G-sec are offered for shorter and medium term. This is a good time to lock-in these higher yields. Target maturity funds can be the ‘go-to’ investment to capitalise on these yields.