POSTED BY November 17, 2010 11:22 am COMMENTS (3)ON
question from a reader on mail
I have a question for you, which I really need to understand. It might seem very stupid to you, but I really don’t understand the principle behind investing in Debt funds. Why invest in debt funds, when so many FD schemes and PPFs etc are available? I was just going through the long-term returns of some of the Debt funds available in the market and found them comparable (in some cases even lower) to the present FD rates. Moreover, there is an added advantage of the security factor in case of FDs. So what is the real point in investing in Debt funds for a long-term basis?