Fixed Deposits

Fixed deposit is an investment vehicle which allows investors to put their idle money into and turn it into guaranteed returns. These returns are calculated at fixed FD rates in a specific time period ranging from 7 days to up to 10 years (20 years in some cases.) As the name suggests, the rate of interest is fixed and does not fluctuate with market swings. This is the USP of fixed deposits – guaranteed returns with negligible risk. Fixed deposits are offered by Financial Institutions, Non-Banking Finance Companies (NBFCs), Manufacturing Companies, Housing Finance Companies & Government Companies.

Debt Funds

A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation. Debt funds are also referred to as Fixed Income Funds or Bond Funds.

A few major advantages of investing in debt funds are low mcost structure, relatively stable returns, relatively high liquidity and reasonable safety.

Debt funds are ideal for investors who aim for regular income, but are risk-averse. Debt funds are less volatile and, hence, are less risky than equity funds. If you have been saving in traditional fixed income products like Bank Deposits, and looking for steady returns with low volatility, debt Mutual Funds could be a better option, as they help you achieve your financial goals in a more tax efficient manner and therefore earn better returns.


Bonds refer to high-security debt instruments that enable an entity to raise funds and fulfil capital requirements. It is a category of debt that borrower’s avail from individual investors for a specified tenure.

Organisations, including companies, governments, municipalities and other entities, issue bonds for investors in primary markets. The corpus thus collected is used to fund business operations and infrastructural development by companies and governments alike.