Mutual funds for better returns than bank FD

My father is retired. We have to invest a lumpsum amount to get safer returns than bank fixed deposits.
–Jitendra Patil

Debt mutual funds can offer marginally better returns, especially after-tax returns, than bank deposits. However, it may not happen all the time. For example, most debt mutual fund categories are offering poor returns now. This is mainly because of rising interest rates. Also, unlike bank deposits, debt mutual funds do not offer assured returns. Even liquid funds, one of the safest debt funds, has some risk. So, you have to be mindful of these things while shopping for debt mutual funds. Moreover, you also need to carefully select categories based on your goal, investment horizon and risk profile. Since your father is retired, it is extremely important to take a call after considering his financial situation. You should consult a mutual fund advisor or financial planner.

Leave a Reply

Your email address will not be published. Required fields are marked *