If turns from debt mutual funds are not guaranteed, why should I invest in these instead of bank FDs?
While it is true that debt funds are subject to credit, market and interest-rate risks in the short term, they offer the benefit of professional management, better returns, tax efficiency and liquidity in the long run.
Therefore, if an investor has a short-term horizon of one year or less, he can opt to keep money in traditional fixed return instruments or look at liquid funds, ultra short term or short-term debt funds, which are debt fund categories. They offer lower risk
