A quick note on bonds

We compared the total returns from the short-end of the curve to Nifty. Here’s what we found:

  1. IRR over the last 10 years for bonds was 6.53%.
  2. Biggest drawdown was -5.04%.
  3. Only two years of negative correlation with NIFTY.

Annual returns:

Equity curve:
0-5's vs. NIFTY returns


The right place for bonds in a portfolio is for regular income. From a returns perspective, you are better off investing in equities. Bonds are no less volatile when compared to the returns they give, and are mostly correlated with equity volatility.

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