Indian mutual funds and insurers adopt accrual strategies, favoring corporate bonds with higher yields as government yields stabilize.

• Mutual funds reallocate to 2-and 3-year corporate bonds, leveraging wider spreads and stable liquidity.
• Trust Mutual Fund shifts from long-term to short-term bonds, citing RBI's liquidity withdrawal and yield advantages.
• Insurers target 5-10 year corporate bonds, capitalizing on 75-85 bps spread and long-term yield potential.