Are Debt-funds better than FD?
It’s one of the hardest questions to answer.
To be honest there is no straight answer to this.
Often Debt-funds are advertised as tax-efficient resources.
However, Post-tax FD returns may or may not be higher than Post-tax Debt returns.
All Debt-Funds are linked to the bond market and are volatile.
The short answer to the question as to which is better, really lies in how much duration you want to stay invested?
If you need the money in one shot within the next 2 to 3 years and are sure about the expense, don’t overthink and go ahead with FD. If you need to park the money and don’t oversee a fixed expense, you can choose Debt-funds of the appropriate category.
Understanding the Debt-Fund category is one of the complex problems for any investor and I strongly advise you to consult your financial advisor to select the best category for your goals.
At Advisoira, we help you select the appropriate investment assets according to your needs in the future!
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