What to do if the interest rate is reduced?

The valuable perspectives shared in the latest release regarding the fall in interest rates and its consequences were highly insightful. In anticipation of potential rate cuts by the RBI soon, what actions should I take if my reliance is on interest income from savings accounts or fixed-income investments? - Sadanand G. 

Editor Responds: We appreciate your kind words of encouragement. With the expected fall in interest rates, individuals depending on interest income from savings accounts or fixed-income investments might encounter diminished returns, resulting in lower yields from these investments. To counter the effects of lower interest rates, one might consider exploring alternative investment options like equities, real estate, or other financial instruments. 

Furthermore, individuals may contemplate portfolio adjustments, entailing the rebalancing of assets or diversifying the investment mix to align with evolving market conditions. To counter reduced interest income, individuals may explore supplementary sources of revenue. This might encompass strategies like initiating a side business, investing in income-generating assets, or investigating new avenues for earning. Continue reading the Dalal Street Investment Journal to gain insights into potential opportunities in the financial landscape that you can capitalise on.