Debt Funds vs Bank Fixed Deposits

I wish to invest my surplus money in mutual funds to generate better returns than bank fixed deposits (FDs). My surplus money is invested in the weekly dividend option of HDFC Cash Management Treasury Advantage Fund as its dividend income is tax free. But this fund’s returns have fallen in recent times. Please suggest a good option that will optimise returns.
 -Setu Shah

This article was originally published on July 29, 2009.