New Delhi, Sept. 3 -- The simple part of your portfolio is getting a lot more complicated.

As interest rates rise, bonds are becoming a drag on investment portfolios. Bond prices move inversely to yields, and yields have been climbing all through this year, leaving many investors with subpar performance or outright losses in their so-called safe investments.

There is no quick fix for the problems bedeviling the bond market, whether persistent inflation, rising government debt, or the torrent of issuance by corporate borrowers that threatens to crowd out demand for U.S. Treasuries. Thus, bond investors now need a different and more strategic approach to their bondholdings than they did just a year or two ago.

"We are in a different envi...