Investors Shift Strategies in 2026: Focus on Yield, Flexicap, and Diversification

In 2026, fixed-income investors are advised to shift focus from duration to yield amid limited scope for further rate cuts, favoring stable returns through selective credit and short-term instruments. Debt fund managers are adopting cautious, tactical strategies with higher cash holdings and state bonds. Meanwhile, equity markets see increased inflows into flexicap, mid-cap, and small-cap funds despite volatility. Multi-asset funds with gold and silver exposure gained popularity as investors seek diversification. Defence-themed and focused equity funds also attract attention amid evolving market dynamics.