'The growth in IIP is still tepid at a level of 2.6%. I think a moderate to high growth level in IIP would be when it is in range of 5-10%,'' says Bekxy Kuriakose, head- fixed income, Principal PNB Asset Management.

In an interview with Meena Konar of Myiris.com, Bekxy Kuriakose said, 'On fixed income funds, we advice investors to remain invested in a balanced manner across three main categories: ultra short term, accrual and duration.''

1. Recently RBI reduced policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75% to 7.5%. Do you expect any rate cut further?

We expect another 25 bps rate cut in the next three months.

2. IIP and CPI shoots up to 2.6% and 5.37%. While WPI for February contracted to 2.06%. What is your view on this?

The growth in IIP is still tepid at a level of 2.6%. I think a moderate to high growth level in IIP would be when it is in range of 5-10%. CPI has come within range as expected by market participants. We expect it to be in a range of 5 - 5.5% in the coming months barring any adverse supply shocks or a poor monsoon. The contraction in WPI yoy growth shows the effect of fall in global commodity prices led by crude oil on manufactured products inflation. Hence overall given both CPI and WPI data inflation appears benign.

3. What is your advice to investors at this point in time?

On fixed income funds, we advice investors to remain invested in a balanced manner across three main categories: ultra short term, accrual and duration (mix of short term and long term income funds).