Bank FD rates drop: Time to rethink your mutual fund investment strategy?
With banks slashing FD rates and investors looking for different investment avenues, a market expert recommends that if one is comfortable with a small level of market risk and aiming for returns that beat inflation and FDs, mutual funds — especially debt, arbitrage or hybrid funds — can offer better long-term growth.
“Those who wish to make higher returns and have a slightly higher risk appetite and those seeking better post-tax returns in falling interest rate scenarios as with interest rates likely to decline after an RBI rate cut, FDs may offer lower returns, whereas debt mutual funds (especially long-duration ones) can benefit from falling yields,” said Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm…
