Debt Fund made a great comeback, now investors are getting better returns than Bank FD
Debt Fund: Debt Fund has been giving very good returns for some time now. You can invest in both FD and debt funds. Debt funds may be a bit risky but they give much better returns than FDs.
If you want to invest your savings, then Debt Fund SIP is a very good option. Earlier people used to avoid investing in this fund but in the last few months, this fund has made its comeback. Recently its long-term return chart has improved. If you invest in it now, you will get good returns after 5 years. Debt fund SIPs are now giving competition to old investments like FDs and RDs due to improvements in long-term returns.
Even though you may have to face risk in debt funds SIP. But for some time these schemes are getting very good returns as compared to FD. Let us tell you that both FD and debt funds are considered very good options for investment. In both of these, you get stable returns. For the past few times, many schemes of debt funds are getting very good returns.
Debt funds are giving very good returns in the last 5 years as compared to debt funds and FDs. In FD, you get 6.20% to 7% interest every year. Whereas in a debt fund, you get interest ranging from 7.8% to 12%. You should keep one thing in mind that if you invest in 100% debt funds, you will not get more than 7% returns.
In today's time, you should know all the information very well before investing any time. There are 5 banks in the country that give you 7% interest on FD. You get fixed returns on FD. As soon as you invest in an FD, your interest rate becomes fixed, it does not change for the entire tenure. If the investment is made on FD for more than 5 years, then you also get the benefit of tax benefit under section 80C of the Income Tax Act. But the interest amount you get after the tenure is taxable. If you get more than Rs 40,000 interest in a year, then the bank also deducts TDS of 10%.
In debt funds, you do not get any guarantee of returns. Its interest rates are also volatile. Most people invest in debt funds for the purpose of investing in bonds and fixed-income securities. If the interest rate falls, the value of your bond goes up. Along with this, debt funds are also considered a very good option in terms of liquidity.
