What to do When Interest Rates Fluctuates?

What You should do when the Interest Rate changes?

Interest rates affect all kind of Investments such as Home Loan, Equities, Gold, Debt & Fixed Income Investments. Here is a Comprehensive Table of, what you should do when the Interest rate rises?

 

Product	Impact of Higher Interest Rates	What You Should Do?
Loan	As a Borrower you have to pay more Interest if the interest rates go up	Lock in to Short term Fixed Rates rather than Floating rate loans
Equity	Whenever the Interest rates go high, the borrowed money becomes costly and thus the expansion of businesses via Debt becomes costly which ultimately depresses the Stock Market	Be Careful while investing in interest rate sensitive sectors such as Banking & Real Estate
Debt	When Interest rates go up, Bond prices crash	Invest in Funds & FDs with a tenure of less than a year and avoid long-tenure bond funds
Gold	Gold rises when the inflation & Interest rates rises	Increase the Gold Allocation of your Portfolio by buying Gold ETFs

Thus, you have to take your various Investment decisions after keeping in mind the Interest rate fluctuations.