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FD vs Debt fund explained with an example..

Above image illustrates the pre and post-tax returns of both fixed deposits and debt funds. Following parameters has been considered for calculation.

 Investment amount: Rs.10,00,000/-
Investment date : 11-Sep-2014 to 11-Sep-2017
Investment Horizon: 3 years
FD in SBI bank interest rate : 9.04% (now it is some-where around 7.10% - 7.25%)
Fund in comparison : Aditya Birla Sun Life Dynamic Bond fund.

 Holding a debt fund for 36 months qualifies for long term capital gain tax which get the benefit of indexation.

 We can clearly see that the post tax returns of debt fund is in surplus of Rs.85,721/- in this case.

For investments contact: Samarth holdings
Mobile: +91-9561733111
Email: chouguleanup@gmail.com

Disclaimer: None of the images are our creation. We have used images from sites like www.pexel.com, www.pixabay.com, Google Images, WhatsApp, Facebook etc.Only the captions associated with the images relating to personal finance have been crafted by us.The copyright of all the pictures are with their respective owners and if they object to our using them, we shall immediately remove the same. Above image credits Advisorkhoj.com 



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Location: Viman Nagar, Pune, Maharashtra, India

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