every ipo needs to be studied thoroughly to gauge its quality of management and growth prospects which can sometimes justify high valuations bismillah chowdhary tells et wealth with moodys upgrading indias rating what is your advice for debt investors given indications of inflation shooting up rising crude prices risk of a populist budget and a possible breach of fiscal target we would not recommend investments in long duration fixed income securities instead investor should opt for short duration credit funds because when yields go up long duration strategy wont give returns on investments investing in short duration credit funds through ulips or mutual funds will be better one should avoid fixed deposits as the rates offered by banks are the lowest in the past few years when compared with the spread over gsecs or corporate bonds of similar maturity investing in taxfree bonds from the secondary market is also a good avenue for investors in the high tax bracket do you expect a rate cut in the december policy meet of the rbi we dont expect a rate cut in december the key reason is cpi after touching 146 in june has doubled to 358 in four months rbis projected inflation for the second half of 201718 is 445 this means for the following four months they are implying inflation readings of 5 to 55 by march if we are in the range of 5 to 55 and given rbis target of 4 inflation it leaves very little room for rbi to cut rates how is your product edelweiss tokio life wealth plus different from other ulips wealth plus doesnt levy any premium allocation and policy administration charges but instead contributes additional allocationsunits on every premium paid by the customer these additional allocations start at 1 and increases every five years to 3 5 and 7 in this manner it accelerates the process of wealth accumulation while also offering protection to the policy buyers whats your view on the current equity markets we continue to remain structurally positive on the equity market in the medium to longterm however there could be some correction or consolidation in the shortterm the economic ecosystem of india has undergone an extreme overhaul at all levels in the last few years reforms such as aadhaar gst insolvency and bankruptcy code demonetisation bank recapitalisation and rera can together put our economy on a faster robust and more sustainable growth path we believe that a strong foundation has been laid with the current runup in the market should investors book some profits one should never try to time the market in fact nobody has ever done this successfully and consistently over time large chunks of investment returns are made by right asset allocation and not timing as our economy is on track to double in the next 46 years and triple in the next 79 years the large chunk of the wealth that will get made will flow through equities this process will speed up with the