{"id":4273,"date":"2024-01-19T13:17:00","date_gmt":"2024-01-19T13:17:00","guid":{"rendered":"https:\/\/lxme.in\/?p=4273"},"modified":"2025-08-02T07:38:09","modified_gmt":"2025-08-02T07:38:09","slug":"debt-mutual-funds-vs-fixed-deposits-guide","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/","title":{"rendered":"Choosing Wisely: Debt Mutual Funds vs Fixed Deposits Explained"},"content":{"rendered":"\n<p>Embark on a financial journey to clarity as we demystify the choice between debt mutual funds and fixed deposits. At <strong>LXME<\/strong>, we unravel the nuances in our latest blog \u2013 \u2018<strong>Debt Mutual Funds vs Fixed Deposits<\/strong>: Where You Should Invest.\u2019 Discover the key factors guiding your investment decisions in this insightful exploration. Let\u2019s navigate the realm of financial choices together and unveil the FD vs Mutual Funds argument.<\/p>\n\n\n\n<p>Traditionally, we have been investing in<strong>&nbsp;Fixed Deposit (FD)<\/strong>&nbsp;as it is considered the safest mode of investment offered by banks. Earlier generation used to rely more on FDs as they use to deliver fixed interest over a period of time.<\/p>\n\n\n\n<p>Now, is it time to change or shift towards a smarter investment option? <strong>Absolutely yes!<\/strong><strong><\/strong><\/p>\n\n\n\n<p>If you want to invest in a low-risk investment instrument that offers you better returns along with tax efficiency, then which instrument we are talking about? Yes! It\u2019s <strong>Debt Mutual Fund<\/strong>.<\/p>\n\n\n\n<p>Let\u2019s learn about the same,<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#What_are_Debt_Mutual_Funds\" >What are Debt Mutual Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#How_are_debt_mutual_funds_tax_efficient\" >How are debt mutual funds tax efficient?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#What_are_Fixed_Deposits\" >What are Fixed Deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Difference_between_FDs_vs_Mutual_Funds\" >Difference between FDs vs. Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Key_takeaways\" >Key takeaways:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Benefits_of_Mutual_Funds\" >Benefits of Mutual Funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#FAQs_%E2%80%93_Common_Questions_on_Debt_Mutual_Funds_vs_Fixed_Deposits\" >FAQs \u2013 Common Questions on Debt Mutual Funds vs Fixed Deposits<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Which_is_better_FD_or_debt_mutual_fund\" >Which is better FD or debt mutual fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Is_it_good_to_invest_in_debt_mutual_funds\" >Is it good to invest in debt mutual funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Is_debt_mutual_fund_tax_free\" >Is debt mutual fund tax free?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#What_are_the_key_differences_between_Debt_Mutual_Funds_and_Fixed_Deposits\" >What are the key differences between Debt Mutual Funds and Fixed Deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/#Which_is_better_for_short-term_goals_Debt_Mutual_Funds_or_Fixed_Deposits\" >Which is better for short-term goals: Debt Mutual Funds or Fixed Deposits?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Debt_Mutual_Funds\"><\/span><strong>What are Debt Mutual Funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>\u2013 Debt funds are the <strong>fixed income funds <\/strong>that offer <strong>capital preservation<\/strong>.<\/p>\n\n\n\n<p>\u2013 These funds invest in debt instruments like<strong>&nbsp;commercial papers, government securities, treasury bills, corporate bonds,<\/strong>&nbsp;and many other <strong>money market instruments<\/strong>.<\/p>\n\n\n\n<p>\u2013 The debt issuer <strong>pre-decides<\/strong>&nbsp;the interest as well as the <strong>maturity period<\/strong>.<\/p>\n\n\n\n<p>\u2013 Investors with lower risk capacity choose to invest in these types of funds. Ideally, the portfolio of every investor should consist of some proportion of debt for stability.<\/p>\n\n\n\n<p>\u2013 Fund managers of these funds select the debt securities which are <strong>high-rated debt instruments <\/strong>in order to <strong>reduce credit risk it <\/strong>(is the possibility of a loss resulting from a borrower\u2019s failure to repay a loan or meet contractual obligations<strong>)<\/strong>. These instruments are less likely to default.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_are_debt_mutual_funds_tax_efficient\"><\/span><strong>How are debt mutual funds tax efficient?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>&nbsp;Your investments in debt mutual funds will only get taxed at the time of withdrawal, so let\u2019s have a look at how it is taxed,<\/p>\n\n\n\n<p>Any capital gains arising on these funds vary depending upon the holding term of the investment. &nbsp;<\/p>\n\n\n\n<p>If you are invested in Debt Mutual Funds and you sell these mutual fund units then the following taxation will be applicable:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Short-Term Capital Gains (STCG): <\/strong>Capital gains on debt mutual funds held for less than 3 years are taxable at applicable <strong>income tax slab rates<\/strong>.<\/li>\n\n\n\n<li><strong>Long-Term Capital Gains (LTCG):<\/strong>&nbsp;Capital gains on debt mutual funds held for more than 3 years are taxable at<strong>&nbsp;20%<\/strong>&nbsp;with<strong>&nbsp;indexation benefit<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>&#8211; You can start investing in Debt Mutual Fund with just \u20b9100.<\/p>\n\n\n\n<p>You can check out the<strong> LXME app <\/strong>and look out for <strong>debt portfolios<\/strong> offered as they are diversified, well-researched and curated by experts and start investing as per your goals!<\/p>\n\n\n\n<p>Now let\u2019s learn about Fixed Deposits,<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Fixed_Deposits\"><\/span><strong>What are Fixed Deposits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>-Fixed deposit are financial instrument provided by banks, non-bank financial institutions, and post offices which is a <strong>guaranteed return<\/strong>&nbsp;investment option for fixed maturity time.<\/p>\n\n\n\n<p>\u2013 In India, FD is popular investment option because it offers a higher rate of interest than a regular savings account.<\/p>\n\n\n\n<p>\u2013 As per the Income Tax Act, 1961, the interest earned on fixed deposits is added to the<strong>&nbsp;\u2018Income From Other Sources\u2019<\/strong>&nbsp;and is <strong>fully taxable<\/strong>.<\/p>\n\n\n\n<p>\u2013 The interest you earn on a fixed deposit is taxable as per your <strong>income tax slab<\/strong>. So if the interest rate of the FD is 5%, the post-tax rate would be 3.5% if you fall in the 30%.<\/p>\n\n\n\n<p>\u2013 If your interest income <strong>exceeds Rs 40,000<\/strong>&nbsp;(<strong>Rs 50,000<\/strong>&nbsp;in the case of senior citizens) then banks needs to cut <strong>10% TDS <\/strong>on your interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_FDs_vs_Mutual_Funds\"><\/span>Difference between FDs vs. Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let&#8217;s understand which investment option is more tax efficient with an example.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Particulars<\/td><td>Fixed Deposit<\/td><td>Debt MF<\/td><\/tr><tr><td>Investment Amount<\/td><td>10,00,000&nbsp;<\/td><td>10,00,000&nbsp;<\/td><\/tr><tr><td>Returns p.a.<\/td><td>7.00%<\/td><td>7.00%<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td><strong>Year 1:&nbsp;<\/strong><\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>Principal&nbsp;<\/td><td>10,00,000&nbsp;<\/td><td>10,00,000&nbsp;<\/td><\/tr><tr><td>Interest&nbsp;<\/td><td>70,000&nbsp;<\/td><td>70,000&nbsp;<\/td><\/tr><tr><td>Tax&nbsp;<\/td><td>-24,874&nbsp;<\/td><td>&#8211;&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td><strong>Year 2:&nbsp;<\/strong><\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>Principal&nbsp;<\/td><td>10,45,125&nbsp;<\/td><td>10,70.000&nbsp;<\/td><\/tr><tr><td>Interest&nbsp;<\/td><td>73,158&nbsp;<\/td><td>74,900&nbsp;<\/td><\/tr><tr><td>Tax&nbsp;<\/td><td>-25,997&nbsp;<\/td><td>&#8211;&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td><strong>Year 3:&nbsp;<\/strong><\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>Principal&nbsp;<\/td><td>10,92,287&nbsp;<\/td><td>11,44.900&nbsp;<\/td><\/tr><tr><td>Interest&nbsp;<\/td><td>76,460&nbsp;<\/td><td>80,143&nbsp;<\/td><\/tr><tr><td>Tax&nbsp;<\/td><td>-27,170&nbsp;<\/td><td>-23,732&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td><strong>Balance after 3 years&nbsp;<\/strong><\/td><td>11,41,577&nbsp;<\/td><td>12,01,310&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td><strong>Returns p.a.&nbsp;<\/strong><\/td><td><strong>4.51%<\/strong><\/td><td><strong>6.30%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Assumptions for the above calculations are:&nbsp;<\/p>\n\n\n\n<p>&#8211; Tax on yearly interest will have to be paid in case of fixed deposits<\/p>\n\n\n\n<p>&#8211; Debt Mutual Funds will be taxed at the time of withdrawal.<\/p>\n\n\n\n<p>\u2013 Interest on FD is assumed to be taxed at 35.535% (Incl. Surcharge &amp; Education Cess)<\/p>\n\n\n\n<p>&#8211; Capital Gains on debt mutual fund is assumed at 23.69% after indexation (inflation assumed at 4%)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_takeaways\"><\/span>Key takeaways:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FD vs Mutual Funds:<\/p>\n\n\n\n<p>Fixed Deposits offer fixed returns with a predetermined interest rate and tenure. Mutual Funds involve market investments, providing variable returns based on market performance with higher liquidity.<\/p>\n\n\n\n<p>Benefits of Fixed Deposits:<\/p>\n\n\n\n<p>Fixed Deposits assure fixed returns, principal protection, and no market risk. They are suitable for conservative investors seeking stability and a guaranteed income stream.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Mutual_Funds\"><\/span>Benefits of Mutual Funds:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mutual Funds offer diversification, professional fund management, and the potential for higher returns. They suit investors seeking growth and willing to bear market fluctuations for long-term gains.<\/p>\n\n\n\n<p>So, make smart investment choices that are <strong>tax efficient<\/strong>&nbsp;and can provide <strong>good returns <\/strong>on your investment, along with other benefits like <strong>flexibility<\/strong>, the<strong>&nbsp;advantage of professional fund management<\/strong>, etc.<\/p>\n\n\n\n<p>The most important thing you need to consider is diversifying your portfolio in different <strong>asset classes<\/strong>&nbsp;to ensure your portfolio is optimizing the risk and returns along with being tax efficient.<\/p>\n\n\n\n<p><strong>If you found this helpful, share this blog with your friends and family!!<\/strong><strong><\/strong><\/p>\n\n\n\n<p><strong>Download the&nbsp;<a href=\"https:\/\/lxme.onelink.me\/95JV\/lxmewebsite\" target=\"_blank\" rel=\"noreferrer noopener\">LXME app<\/a>&nbsp;now to start investing!<\/strong><\/p>\n\n\n\n<p><strong>Related Article You May Like: \u2013<\/strong>\u00a0<a href=\"https:\/\/lxme.in\/financial-planning-for-women-in-india\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/lxme.in\/financial-planning-for-women-in-india\/\" rel=\"noreferrer noopener\">Financial Planning for Women: Expert Guidance for a Secure Future<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_%E2%80%93_Common_Questions_on_Debt_Mutual_Funds_vs_Fixed_Deposits\"><\/span><strong>FAQs \u2013 Common Questions on Debt Mutual Funds vs Fixed Deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1695894290828\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Which_is_better_FD_or_debt_mutual_fund\"><\/span>Which is better FD or debt mutual fund?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p><a href=\"Both have merits. FDs offer stability, while Debt Mutual Funds provide flexibility.\"><strong>FD or Debt Mutual Fund:<\/strong><br \/>Both have merits. FDs offer stability, while Debt Mutual Funds provide flexibility.<\/a><\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1695894381536\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is_it_good_to_invest_in_debt_mutual_funds\"><\/span>Is it good to invest in debt mutual funds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p><strong>Investing in Debt Mutual Funds:<\/strong>\u00a0Yes, for diversification and flexibility. LXME\u2019s blog details why debt mutual funds can be a smart addition to your portfolio.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1695894444074\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is_debt_mutual_fund_tax_free\"><\/span>Is debt mutual fund tax free?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p><strong>Debt Mutual Fund Tax Implications:<\/strong>\u00a0No, they aren\u2019t entirely tax-free. Explore LXME\u2019s insights on the tax implications of debt mutual funds for a comprehensive understanding.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1705692053491\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_are_the_key_differences_between_Debt_Mutual_Funds_and_Fixed_Deposits\"><\/span>What are the key differences between Debt Mutual Funds and Fixed Deposits?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Debt Mutual Funds offer market-linked returns, while Fixed Deposits provide fixed interest rates. Mutual funds offer liquidity, but FDs have a lock-in period. FDs offer guaranteed returns, whereas mutual funds are subject to market risks.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1705692100122\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Which_is_better_for_short-term_goals_Debt_Mutual_Funds_or_Fixed_Deposits\"><\/span>Which is better for short-term goals: Debt Mutual Funds or Fixed Deposits?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>For short-term goals, Debt Mutual Funds are preferable due to flexibility and potentially higher returns. Fixed Deposits provide stable returns but may lack the liquidity needed for short-term objectives.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"Which is better FD or debt mutual fund?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"FD or Debt Mutual Fund:\nBoth have merits. FDs offer stability, while Debt Mutual Funds provide flexibility.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Is it good to invest in debt mutual funds?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Investing in Debt Mutual Funds: Yes, for diversification and flexibility. LXME\u2019s blog details why debt mutual funds can be a smart addition to your portfolio.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Is debt mutual fund tax free?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Debt Mutual Fund Tax Implications: No, they aren\u2019t entirely tax-free. Explore LXME\u2019s insights on the tax implications of debt mutual funds for a comprehensive understanding.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What are the key differences between Debt Mutual Funds and Fixed Deposits?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Debt Mutual Funds offer market-linked returns, while Fixed Deposits provide fixed interest rates. Mutual funds offer liquidity, but FDs have a lock-in period. FDs offer guaranteed returns, whereas mutual funds are subject to market risks.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Which is better for short-term goals: Debt Mutual Funds or Fixed Deposits?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"For short-term goals, Debt Mutual Funds are preferable due to flexibility and potentially higher returns. Fixed Deposits provide stable returns but may lack the liquidity needed for short-term objectives.\"\n    }\n  }]\n}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Embark on a financial journey to clarity as we demystify the choice between debt mutual funds and fixed deposits. At LXME, we unravel the nuances in our latest blog \u2013 \u2018Debt Mutual Funds vs Fixed Deposits: Where You Should Invest.\u2019 Discover the key factors guiding your investment decisions in this insightful exploration. Let\u2019s navigate the <a href=\"https:\/\/lxme.in\/v1\/debt-mutual-funds-vs-fixed-deposits-guide\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Choosing Wisely: Debt Mutual Funds vs Fixed Deposits Explained<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":4278,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[649,655],"tags":[416,415,417,166,137],"class_list":["post-4273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","category-saving","tag-debt-mutual-funds","tag-debt-mutual-funds-vs-fixed-deposits","tag-fixed-deposits","tag-women-and-investing","tag-women-and-money"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/4273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=4273"}],"version-history":[{"count":11,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/4273\/revisions"}],"predecessor-version":[{"id":18691,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/4273\/revisions\/18691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/4278"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=4273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=4273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=4273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}