Investment advice (FDs Vs Debt Mutual funds)

Q & A Forum › Category: Fixed Deposits › Investment advice (FDs Vs Debt Mutual funds)

dr_claiwala asked 8 years ago

Dear Srikantji , I have 10 lakhs to be invested for 3 yrs. l am getting 9% interest in bank FD. I am a retired man and comes under 10 to 20 % tax slab. Should I invest in bank FD or a debt/mip fund ? kindly advise

4 Answers

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Sreekanth Staff answered 8 years ago

Dear Sir, Are you highly dependent on the interest income generated by this corpus? Debt funds are more tax efficient than FDs, but kindly note that they do not provide guaranteed returns and riskier than FDs. Suggested readings : https://www.relakhs.com/lump-sum-investment-options-retirees/ https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/

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dr_claiwala answered 8 years ago

No sir,I am not dependent on this interest income.

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Sreekanth Staff answered 8 years ago

Hi Sir, If so, you may consider MIP-conservative Funds like, SBI MIP Floater plan (or) Short-term Debt funds like Franklin Low duration fund. You may consider Growth option, if accumulation is your objective. Suggested readings : https://www.relakhs.com/direct-mutual-fund-plans-buy-online/ https://www.relakhs.com/mutual-fund-direct-plans-vs-regular-plans/ https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/

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dr_claiwala answered 8 years ago

Thanks Srikantji