Investment Strategies Amid AI Hype and Inflation Concerns

Investors seeking relatively safe debt options can consider corporate bond and Banking & PSU debt funds, which invest in high-rated or government-backed securities, reducing credit risk. Despite their safety, these funds face risks from interest rate fluctuations. Hybrid funds, blending equity and debt, are suitable for conservative investors but not for regular income. For retirement-focused investments, mutual funds ranked for quality performance and low fees are viable, offering diversification and stability. Broad market optimism is tempered by high valuations from AI hype, with expectations of muted returns. Goldman Sachs advises focusing on value and diversification beyond mega-cap stocks for above-average returns.