Fixed Deposits vs. Debt Mutual Funds: Which is Better Option?

Fixed deposits offer a guaranteed return, while debt mutual funds don't.

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Debt mutual funds have the potential to offer higher returns than fixed deposits.

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Debt mutual funds offer more flexibility in terms of investment tenure and redemption.

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Fixed deposits are a safer investment option, while debt mutual funds are subject to market risks.

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F.d. offer tax-saving benefits under Section 80C of the Income Tax Act, while debt mutual funds offer tax efficiency.

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F.d. are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC), while debt mutual funds do not have any such guarantee.

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Debt mutual funds offer the benefit of compounding, which means that the returns are reinvested to generate higher returns over time.

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