FD vs Debt Mutual Funds: Kya “Mutual Funds Sahi Hai”?

FD vs Debt mutual funds

For most Indians, fixed deposit (FD) was a preferred mode of investment as it brings a sense of security and predictability. It keeps market volatility at bay and offers assured returns.

That is why some retail investors, especially retirees, prefer parking their money in FDs. However, their earnings have fallen by 25% or more in the last three years.

Furthermore, with inflation eroding the value of money, it is essential that investors chalk out strategies that beat inflation, provide real returns and sometimes higher than the market returns.

This makes it essential to look for alternative investment channels such as Debt Mutual Funds to generate stable, higher inflation-adjusted returns and benefit of active fund management.


Why “Debt Mutual Funds”are really “Sahi” Investment Option.

Fixed deposite


Debt Mutual funds and Fixed deposits are constantly pitted against each other. When people constantly ask which is better, Debt mutual funds or fixed deposits, it all depends upon the person’s Risk appetite and desire to gain higher returns.

One of the biggest differences between mutual funds and fixed deposits is that, a Debt mutual fund provides return on the money invested and fixed deposits offers interest payments on the money deposited. As you can see, there is a major difference between investing money and depositing money.

To help you understand this better, let us dive deep into difference between FD vs Debt mutual funds.

Difference between Debt Mutual Funds and Fixed Deposits (FD).


Calculation of FD vs Debt Mutual Funds.


Example of SBI FD vs SBI Debt Mutual Funds.

And I concede FD rates have sharply gone down. I have copied the current FD rates from the SBI website.

As you can see SBI Debt mutual Funds are performing way better than its Fixed Deposits.

CONCLUSION: What should you do?

Time has gone to have conservative Investment approach and Deposit all you Savings into FD. To cater with the modern lifestyle, one should look forward to gain higher Returns and Portfolio diversification is the only way out.

It sensibleto approach a professional Financial Advisor who can guide you how to allocate your Corpus (Funds) into different Asset class. This will diversify your risks and generate higher returns.

We at Tstock Mantra Investments provide Complete Financial Planning and Mutual Fund Review services for an Individual i.e., Investment Planning, Insurance Planning, Retirement Planning, Mutual Fund Research and Life-time Review, and so on.

Read more such Informative Blogs on our Blog Page and enhance you Financial Knowledge. To Join our free Telegram channel for valuable Information.







3 thoughts on “FD vs Debt Mutual Funds: Kya “Mutual Funds Sahi Hai”?”

  1. Hello sir , how I find the right mutal fund . ? And after 1 year can I withrawal my amount through mutal fund .

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