Are debt funds safe for conservative investors?

Debt funds can be suitable if investors choose low-duration, high-quality funds and understand basic risks.

Can debt funds give guaranteed returns like FDs?

No, debt fund returns are market-linked and not guaranteed.

Which is better for 1-3 years: FD or debt fund?

It depends on liquidity needs and risk tolerance. Both can work for this horizon.

Can I lose money in debt funds?

Yes, short-term losses are possible, especially during interest rate changes.

Who should avoid debt funds completely?

Investors who cannot tolerate market fluctuations or require guaranteed returns should avoid them.

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Updated Date:Jul 7, 2026

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Debt Funds vs Fixed Deposits: Which Is Better for Low-Risk Investors?

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