Rising FD interest rates: Are short-duration funds a smarter investment option?

With fixed deposit (FD) interest rates on the rise, many investors are questioning the efficacy of short-duration funds, a popular investment option. While it is true that the returns on short-duration debt funds over the past year have been around 4.80 per cent, which is not very high compared to the current fixed deposit rates of around 6.80 per cent, this comparison is not entirely accurate. Comparing short-duration funds and fixed deposits The returns on short-duration debt funds are historical, whereas the fixed deposit rates are forward-looking rates that you