Paisa Vaisa with Anupam Gupta cover image

Paisa Vaisa with Anupam Gupta

Fixed Deposits vs Debt Funds with SBI Mutual Fund

Jun 5, 2023
27:38

Podcast summary created with Snipd AI

Quick takeaways

  • Investing in debt mutual funds can be a smart move with the right time frame, considering allocation to guild funds for duration benefits and no credit risk or short-term funds for lower volatility.
  • Debt mutual funds offer benefits like liquidity, opportunity to increase duration as interest rates change, tax-efficient compounding, and consistent income for retirement planning, making them an alternative to fixed deposits with competitive returns.

Deep dives

Investing in Debt Mutual Funds

Investing in debt mutual funds can be a smart move with the right time frame. Consider allocating money to guild funds, which offer duration benefits and have no credit risk. These funds are attractive for longer-term investments. Short-term funds are another option for those seeking lower volatility. The Indian corporate space is also attractive, with many companies having improved balance sheets and less credit risk. While supply is currently restricted, improved supply is expected in the future, making credit-focused debt funds a viable option.

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