New Delhi, Jan. 30 -- In a well-balanced portfolio, allocation to debt is important for capital preservation and consistent income. It can act as a cushion against risks emanating from volatile equity markets and provides liquidity for short-term needs. However, high net-worth investors (HNIs) often end up with relatively low returns from traditional debt products due to their modest gross yield and being a part of the highest tax paying bracket in the country. In such a scenario, which fixed-income products should HNIs consider to earn a higher yield?

Traditional products

The traditional fixed-income products in debt allocation can include fixed deposits, government securities, commercial papers, etc., or indirect exposure to debt inst...