I'm 42. Avg return from my debt fund corpus is sub 5%. Shall I shift to bank FD?
As the rising interest rate regime is likely to continue for some time, I will suggest you shift your debt fund investment to bank FDs yielding over 6% p.a. for 1–2-year tenures
I am 42 and have a debt fund corpus of ₹6 lakh for my short-term goals and emergency fund. While my equity portfolio has generated high returns over the last 2-3 years, the average return from my debt fund corpus over the past 1 year is less than 5%. On the other hand, banks are steadily increasing their FD rates with many of them offering interest rates in the range of 5.5-6% p.a. I don’t wish to invest my debt fund corpus in equity funds. Should I redeem my debt fund investment and shift to bank FDs?