When A Fixed Deposit Is As Good As a Debt Fund
Before getting into when a fixed deposit functions as effectively as a debt mutual fund, it is imperative to first understand these two financial products. Both are handy saving scheme in India which can help you earn higher returns. Debt Mutual Funds are those which primarily invest the money of the investors in a particular portfolio comprising of fixed income or debt securities including government securities, treasury bills, money market instruments, corporate bonds and other debt securities that have varying durations. Debt funds usually pay out fixed interest rates and have fixed periods for maturity.
These are the following scenario to understand about fixed deposit and debt fund: