Better returns than savings bank account
Instead of keeping funds in a savings bank account, consider parking them in debt funds, which can offer returns ranging from 6 to 7%. Debt funds invest in fixed-income securities like bonds and commercial papers, providing relatively stable returns with low risk.
*Benefits of debt funds:*
- *Higher returns*: Debt funds typically offer higher returns than savings accounts, making them an attractive option for short-term to medium-term investments.
- *Liquidity*: Many debt funds offer easy withdrawal options, allowing you to access your money when needed.
- *Low risk*: Debt funds are generally considered low-risk investments, making them suitable for conservative investors.
*Popular debt fund options:*
- *Liquid funds*: Ideal for short-term investments, these funds invest in overnight securities and offer easy liquidity.
- *Short-term debt funds*: Suitable for investments with a horizon of 1-3 years, these funds invest in securities with shorter maturities.
Before investing, assess your financial goals, risk tolerance, and liquidity needs. Debt funds can be a great way to earn higher returns while maintaining liquidity. However, it's essential to evaluate the fund's performance, fees, and credit quality before investing. Consult with a financial advisor or conduct your own research to make informed decisions.
