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What is the key advantage of investing in debt funds compared to fixed deposits?
  • a)
    Debt funds guarantee fixed returns.
  • b)
    Debt funds provide higher interest income.
  • c)
    Debt funds offer capital protection.
  • d)
    Debt funds are more tax-efficient.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What is the key advantage of investing in debt funds compared to fixed...
The key advantage of investing in debt funds compared to fixed deposits is that debt funds are more tax-efficient. In most cases, long-term gains from debt funds are taxed at a lower rate after indexation, making them tax-friendly for investors.
Additional Fact: Debt funds also offer liquidity and the potential for better returns compared to traditional fixed deposits.
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What is the key advantage of investing in debt funds compared to fixed deposits?a)Debt funds guarantee fixed returns.b)Debt funds provide higher interest income.c)Debt funds offer capital protection.d)Debt funds are more tax-efficient.Correct answer is option 'D'. Can you explain this answer?
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