Debt funds can give good returns in 2017

While their returns will continue to be better than fixed deposits, don't go overboard

For Gurgaon-based Rohit Seth, 2016 was a year when he changed his faith as an investor. From being a hard-core investor in fixed deposits and public provident fund, he moved to a debt-equity allocation of 70:30. And he hasn’t been disappointed. His debt funds are earning 12-14 per cent, against the 8-8.5 per cent returns from fixed deposits. And he is wiser as well. “I do understand that debt funds can be uncertain. But I am invested for a minimum of five to six years and in that period, the returns will not be negative. I also don’t invest the