New Delhi, Oct. 8 -- The Reserve Bank of India's decision to raise the repo rate by 25 basis points to 5.5% has changed the outlook for fixed-income investors. The October policy marked the first rate hike since February 2023, while the central bank also shifted its stance from neutral to calibrated tightening.

For debt-fund investors, the key question now is whether rising yields make it a good time to invest or whether it is better to wait for the rate-hiking cycle to play out. The answer depends largely on the fund's maturity profile and the investor's time horizon.

The rate hike itself was not a complete surprise for markets. Bond yields had already risen substantially before the policy announcement. According to Axis MF Research, y...