Debt mutual funds gave up to 23% returns in one year

Amidst the high volatility in the stock market, investors have started turning to debt mutual funds. One of the reasons for this is that in the last one year, bank FDs gave returns of up to 7%, while debt mutual funds earned 8% to 23%.

In April this year, there was a net investment of Rs 1.06 lakh crore in debt mutual funds, while in March there was a withdrawal of Rs 56,884 crore. Liquid funds and money market funds have the highest share in this. Analysts say investors are turning to fixed income products due to the volatility in returns of equity funds. Despite the removal of tax benefits from debt mutual funds in the Finance Bill, investors are getting attracted towards debt funds. According to Shriram BKR, Senior Investment Strategist, Geojit Financial Services, debt mutual funds are benefiting from the rise in interest rates. This is the right time to increase investment in such products. Because the tightening of monetary policy is in its final stages. In such a situation, the income from debt will increase.

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