Given the recent spate of defaults and downgrades in debt funds, are they still good to invest in? Kindly advise.
Yes, they are. The way interest rates and deposit rates have come down, debt funds have become even more important now. A few weeks back, I came across a news item saying that some of the fixed deposit rates are now even lower than the savings bank account rates. So, I really wonder why one should make a deposit, but this is the shape of things to come.
Further, debt funds do help enhance your returns and thus, for the risk-averse investors, they still make a lot of sense. Just make sure to choose your debt funds carefully and err on the side of caution.
This article was originally published on July 03, 2020.
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