Investment in Debt mutual fund

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Quick Summary

If you have a significant sum of money in your savings account, you're weighing the options between a low-interest bank Fixed Deposit (FD) and a Debt Mutual Fund. While FDs offer security, Debt Mutual Funds may provide higher returns, though they come with slightly more risk and a shorter lock-in period. The decision depends on your risk tolerance and investment goals.

DIVYESH JAIN

DIVYESH JAIN (Querist)

26 September 2021 Dear Sir,

If I am having around Rs. 5 - 10 lacs in my saving bank account then is it advisable to transfer it to a Bank Fixed deposit whose interest rates are very low or should I invest it to a good Debt Mutual fund to earn higher interest than Fixed deposit.

Is Debt Mutual fund safe to invest.

Please advise.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

26 September 2021 As compared to FD, risk factor in debt MF is little more, but advantage is they have much less lock in period.
Though return not guaranteed, some selected funds give better returns than FD.

DIVYESH JAIN

DIVYESH JAIN (Querist)

28 September 2021 Thanks for your reply

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

28 September 2021 My Pleasure ........

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