Debt mutual funds Vs fixed deposits

Are you looking for some alternatives to fixed deposits like short term debt mutual funds?

If you want to invest for short term and want stable returns or you already have some money invested in fixed deposits,  you might be keen to move them to other investment options which give higher returns and higher liquidity with access or liquidation option for your investment in short term like six months or three months without any penalty.

With an investment horizon of a year or less, you may consider investing in debt mutual funds with low Macaulay duration. These types of debt mutual funds are slightly riskier than your normal fixed bank deposits, but they offer higher returns with better liquidity options. Ideal for someone who is ready to take slightly higher risk and avoid volatility. These scheme’s park funds in debt instruments having a Macaulay duration of three to six months. If you are game for a little more risk, you may consider investing in low duration funds as they invest in debt instruments maturing in six to 12 months and are relatively less volatile than other debt schemes.

Benefits of investing in short term debt mutual funds

• Higher returns

• Lower tax

• High liquidity

• No lock in or penalty

• Withdraw anytime

So do not wait and start investing in best debt mutual funds in India with ezeehouse.com

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