Some investors are connecting dots to infer that debt funds are a riskier lot and contemplating going back to the ‘safe-haven’ bank Fixed Deposits (FD). But would that be the right thing to do?
At the moment liquid funds are delivering an annualised return of 5.5%-6%. This is lower than the 6.5%-7% seen a year ago. However, it is in line with the downward trending interest rates in the economy. If you are feeling disappointed with these returns and think that its better to move to a higher return fund or leave money in the bank itself, first read through the points below and then decide what to do.