Debt Funds vs Fixed Deposits: Which is Better?

Choosing between debt funds and fixed deposits? Here's a detailed comparison to help you make the right decision for your financial goals.

Fixed Deposits: The Traditional Choice

Fixed deposits offer guaranteed returns and capital protection, making them a popular choice for conservative investors.

Debt Funds: The Modern Alternative

Debt funds invest in fixed-income securities and offer potential for higher returns with professional management.

Key Differences

• • Returns: Debt funds offer potential for higher returns
• • Liquidity: Debt funds provide better liquidity
• • Tax efficiency: Debt funds are more tax-efficient for long-term
• • Risk: FDs offer guaranteed returns, debt funds have credit risk