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100 FAQ's on Basic Finance

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Are debt funds better than fixed deposits?

To answer this question, let’s discuss some basic points of differentiation between fixed deposits and debt funds– 



As we can see, each instrument has their own benefits and disadvantages. Depending upon our risk appetite and return requirements, we must decide upon the type of instrument that will suit our portfolio best.


For example, a fixed deposit is beneficial for someone with a low risk appetite, since returns are guaranteed.

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Units 82/101