What are debt funds: Types and key risks to keep in mind
Tax rates on fixed deposits (FDs) can go up to 33 per cent, said Feroze Azeez, Deputy CEO, Anand Rathi Wealth Management. However, the longer one holds a debt fund, the lesser the tax rate turns out to be. Tax is charged on debt funds in the form of capital gains, which becomes negligible after 3-4 years, he said.
Interest rates offered on debt funds in India can go as high as 9-10 per cent. Image source: Pixabay