The country is currently struggling with the second wave of corona. This has had a negative impact on our economy. In this difficult time, if we talk about investment, there is still people’s belief in stability. The biggest reason for this is the guarantee of security and good returns. But there are better options out there than FD, where it offers better returns on investment –
FMP Mutual Fund
The FMP is a mutual fund scheme that comes under debt funds (fixed income media). Mutual fund companies invest in bonds and debt instruments. It is considered more secure than other projects. The investment period will range from three to four months to three to four years.
Higher tax savings: FMPs lead to higher tax savings. FMPs have an index advantage, that is, after paying taxes, one can gain more through FMPs. Profit / return earned on the FMP is called capital gain. Interest income on FD is added to investor income and is taxed on a fixed tax slab.
Terms, instead of withdrawing money from PF, EPF claim settlement now takes 3 days, get to know the process
Low fee: The cost ratio when buying and selling FMPs is very low. Therefore, the cost of investment is lower in them and the return is higher. By comparison, the termination of a fixed deposit scheme falls under the tax net.
Debt Mutual Fund
Debt funds are one of the categories of mutual funds. Debt Mutual Funds invest in fixed income securities. These include bonds, government securities, Treasury bills and non-convertible debentures. Debt funds are one of the safest investment tools available to investors who want to make a good return on their investment without taking any risk. In addition, returns are fairly stable, because returns on equity funds are volatile. The return rate here is 7 to 9 percent.
Benefits of investing
Debt funds primarily invest in securities that pay fixed interest, guaranteed returns. However, loan funds are unlikely to work. This happens when an investment security has a low credit rating or an interest rate move. Investors may invest money in debt funds to their advantage. Investors can invest money in a loan fund for three to six months and withdraw their investment whenever they want.
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