Debt mutual funds are giving more returns than FD, know how it will benefit you

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If you are planning to invest and you are going to invest in FD, then definitely read this news first. Actually, debt mutual funds are giving more and better returns than fixed deposits. This category of mutual funds has given returns of up to 11 per cent in the last one year. Today we will tell you about Debt Mutual Funds where you can invest and earn good profits.

Debt Mutual Fund

Debt Mutual is a type of fund in Mutual Funds. Under this, investments are mainly made in places like fixed income securities such as government securities, corporate bonds and certificates of deposit. These funds are such funds which give higher returns than FDs. Debt mutual funds invest in fixed-interest assets, so they are not subject to volatility as in the equity market. In this, investors get safe returns.

Which investors are right for

Debt Mutual Fund is a good option for those investing for 3-4 years. These mutual fund schemes are less risky than stocks. They give much better returns than FDs.  

How much to invest in this

In debt mutual funds you have to invest as much of your total portfolio as you are of age. If you are 50 years old and your total investment is Rs 1 lakh then you can invest up to Rs 50 thousand in Debt Mutual Funds.

Long Term Capital Gains Tax (LTCG) is levied on investments up to 3 years in debt mutual funds. At the same time, Short Term Capital Gains Tax (STCG) is levied on withdrawals before 3 years.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Seek advice. It is never advised to invest money here from ABPLive.com to anyone.

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