New Delhi, Oct. 5 -- Debt is often treated as the low-risk anchor of an investment portfolio, but that does not mean all debt investments carry the same risks. For investors, the right debt allocation can depend on their age, investment horizon, income needs and tolerance for interest-rate and credit risk.

This is particularly relevant as the Reserve Bank of India's Monetary Policy Committee began its October meeting on Monday. With bond yields around 7.5%, investors are also looking at fixed income more closely, but higher yields do not automatically translate into higher or guaranteed returns.

In an interview with Livemint, Devang Shah, head of fixed income at Axis Mutual Fund, explains how investors should approach debt across differ...