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Are Fixed Deposits Still the Safest Way to Grow Money in 2026?

Updated on March 4, 2026 , 204 views

Fixed Deposits (FDs) have long been a go-to investment option for millions of Indians. Known for their safety, predictable returns, and simplicity, FDs are often the first financial product people trust with their hard-earned money.

Fixed Deposits

But with rising inflation, evolving investment options, and greater financial awareness, the question arises - Are Fixed Deposits still the safest way to grow your money? Or are they slowly losing relevance in a changing economy? Let’s dive deep.

What is a Fixed Deposit (FD)?

A Fixed Deposit is a financial instrument provided by banks and NBFCs that offers investors a higher rate of interest than a regular Savings Account, until the given maturity date. You deposit a lump sum amount for a fixed tenure, and the Bank pays interest either periodically or on maturity.

Key features:

  • Fixed interest rate (usually between 5% and 7%)
  • Safe and low-risk
  • Premature withdrawal allowed (with penalties)
  • Taxable interest income

Why FDs are Considered Safe

  • Capital Protection: The principal amount is protected.
  • insurance: Deposits up to ₹5 lakh per individual per bank are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation).
  • Guaranteed Returns: You know upfront how much you will earn.
  • No Market Risk: Not affected by stock market Volatility.

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The Catch: What Most People Overlook

While FDs are undoubtedly safe, they are not always the best way to grow your money. Here’s why:

🔻 1. FDs May Not Beat Inflation

Let’s say:

  • You earn 6% interest on your FD
  • Inflation is at 6.5%
  • Your real return = -0.5% (negative)

Over time, inflation eats into the purchasing power of your money. What ₹1 lakh can buy today, it might not be able to buy 5 years later—even if you've “grown” it in an FD.

📖 Reference: Ministry of Statistics – Inflation Data

2. FD Interest is Taxable

  • FD interest is taxed as per your income slab.
  • If you're in the 30% slab, your post-tax return from a 6.5% FD is just 4.55%
  • This makes it even harder to beat inflation

⚠️ 3. Liquidity Comes With Penalties

You can withdraw an FD before maturity, but you’ll usually lose 0.5%–1% on interest. So it’s not truly flexible.

When FDs Still Make Sense in 2026

Despite these drawbacks, FDs aren’t useless. In fact, they can be an important part of a balanced Portfolio. Use FDs for:

  • Emergency funds (when safety > returns)
  • Short-term goals (6–24 months)
  • Low-risk capital preservation
  • Senior citizens (with higher FD rates and no market risk)

FD Alternatives: Where to Consider Investing Instead

If your goal is long-term wealth creation, here are some alternatives:

Fund Selection Methodology used to find 10 funds

  • Category: Equity
  • AUM Range: 500 to 1000000 Cr
  • Sorted On : 3-year return (high to low)
  • Tags: fcpro
  • No Of Funds: 10

✅ Equity Mutual Funds

  • Potential to beat inflation over 5–10 years
  • Suitable for long-term goals like retirement, home buying
  • Taxed more efficiently (especially under ₹1 lakh LTCG)

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sub Cat.
DSP World Gold Fund Growth ₹63.9103
↓ -2.35
₹1,97528.764.3164.158.831167.1 Global
SBI PSU Fund Growth ₹36.0126
↓ -0.17
₹5,9808.216.728.232.226.711.3 Sectoral
Invesco India PSU Equity Fund Growth ₹67.37
↑ 0.19
₹1,4924.110.526.830.224.710.3 Sectoral
LIC MF Infrastructure Fund Growth ₹49.1602
↑ 0.07
₹9461.11.417.427.822.5-3.7 Sectoral
Franklin India Opportunities Fund Growth ₹246.575
↑ 2.51
₹8,271-4.7-3.613.527.219.23.1 Sectoral
Franklin Build India Fund Growth ₹143.766
↓ -0.94
₹3,0030.82.917.126.222.73.7 Sectoral
SBI Healthcare Opportunities Fund Growth ₹429.106
↑ 5.07
₹3,823-0.1-0.88.526.117.2-3.5 Sectoral
DSP India T.I.G.E.R Fund Growth ₹320.958
↓ -0.49
₹5,1843318.625.423.4-2.5 Sectoral
Invesco India Mid Cap Fund Growth ₹172.23
↓ -1.82
₹10,058-6.9-4.51825.319.86.3 Mid Cap
Canara Robeco Infrastructure Growth ₹162.55
↓ -0.09
₹8793.1218.125.322.80.1 Sectoral
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 5 Mar 26

Research Highlights & Commentary of 10 Funds showcased

CommentaryDSP World Gold FundSBI PSU FundInvesco India PSU Equity FundLIC MF Infrastructure FundFranklin India Opportunities FundFranklin Build India FundSBI Healthcare Opportunities FundDSP India T.I.G.E.R FundInvesco India Mid Cap FundCanara Robeco Infrastructure
Point 1Lower mid AUM (₹1,975 Cr).Upper mid AUM (₹5,980 Cr).Bottom quartile AUM (₹1,492 Cr).Bottom quartile AUM (₹946 Cr).Top quartile AUM (₹8,271 Cr).Lower mid AUM (₹3,003 Cr).Upper mid AUM (₹3,823 Cr).Upper mid AUM (₹5,184 Cr).Highest AUM (₹10,058 Cr).Bottom quartile AUM (₹879 Cr).
Point 2Established history (18+ yrs).Established history (15+ yrs).Established history (16+ yrs).Established history (18+ yrs).Oldest track record among peers (26 yrs).Established history (16+ yrs).Established history (21+ yrs).Established history (21+ yrs).Established history (18+ yrs).Established history (20+ yrs).
Point 3Rating: 3★ (upper mid).Rating: 2★ (lower mid).Rating: 3★ (upper mid).Not Rated.Rating: 3★ (upper mid).Top rated.Rating: 2★ (lower mid).Rating: 4★ (top quartile).Rating: 2★ (bottom quartile).Not Rated.
Point 4Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: Moderately High.Risk profile: High.Risk profile: High.Risk profile: High.Risk profile: Moderately High.Risk profile: High.
Point 55Y return: 30.96% (top quartile).5Y return: 26.72% (top quartile).5Y return: 24.66% (upper mid).5Y return: 22.54% (lower mid).5Y return: 19.15% (bottom quartile).5Y return: 22.67% (lower mid).5Y return: 17.18% (bottom quartile).5Y return: 23.39% (upper mid).5Y return: 19.76% (bottom quartile).5Y return: 22.80% (upper mid).
Point 63Y return: 58.76% (top quartile).3Y return: 32.21% (top quartile).3Y return: 30.16% (upper mid).3Y return: 27.77% (upper mid).3Y return: 27.23% (upper mid).3Y return: 26.21% (lower mid).3Y return: 26.06% (lower mid).3Y return: 25.38% (bottom quartile).3Y return: 25.30% (bottom quartile).3Y return: 25.27% (bottom quartile).
Point 71Y return: 164.13% (top quartile).1Y return: 28.24% (top quartile).1Y return: 26.83% (upper mid).1Y return: 17.45% (lower mid).1Y return: 13.51% (bottom quartile).1Y return: 17.13% (bottom quartile).1Y return: 8.54% (bottom quartile).1Y return: 18.57% (upper mid).1Y return: 18.00% (lower mid).1Y return: 18.13% (upper mid).
Point 8Alpha: 2.12 (top quartile).Alpha: 0.05 (top quartile).Alpha: -2.70 (bottom quartile).Alpha: -6.08 (bottom quartile).Alpha: -1.01 (lower mid).Alpha: 0.00 (upper mid).Alpha: -2.03 (bottom quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).
Point 9Sharpe: 3.41 (top quartile).Sharpe: 0.63 (top quartile).Sharpe: 0.53 (upper mid).Sharpe: 0.03 (bottom quartile).Sharpe: 0.12 (lower mid).Sharpe: 0.21 (upper mid).Sharpe: -0.46 (bottom quartile).Sharpe: 0.08 (bottom quartile).Sharpe: 0.35 (upper mid).Sharpe: 0.13 (lower mid).
Point 10Information ratio: -0.47 (bottom quartile).Information ratio: -0.63 (bottom quartile).Information ratio: -0.50 (bottom quartile).Information ratio: 0.29 (top quartile).Information ratio: 1.66 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: -0.15 (lower mid).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).

DSP World Gold Fund

  • Lower mid AUM (₹1,975 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: High.
  • 5Y return: 30.96% (top quartile).
  • 3Y return: 58.76% (top quartile).
  • 1Y return: 164.13% (top quartile).
  • Alpha: 2.12 (top quartile).
  • Sharpe: 3.41 (top quartile).
  • Information ratio: -0.47 (bottom quartile).

SBI PSU Fund

  • Upper mid AUM (₹5,980 Cr).
  • Established history (15+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: High.
  • 5Y return: 26.72% (top quartile).
  • 3Y return: 32.21% (top quartile).
  • 1Y return: 28.24% (top quartile).
  • Alpha: 0.05 (top quartile).
  • Sharpe: 0.63 (top quartile).
  • Information ratio: -0.63 (bottom quartile).

Invesco India PSU Equity Fund

  • Bottom quartile AUM (₹1,492 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: High.
  • 5Y return: 24.66% (upper mid).
  • 3Y return: 30.16% (upper mid).
  • 1Y return: 26.83% (upper mid).
  • Alpha: -2.70 (bottom quartile).
  • Sharpe: 0.53 (upper mid).
  • Information ratio: -0.50 (bottom quartile).

LIC MF Infrastructure Fund

  • Bottom quartile AUM (₹946 Cr).
  • Established history (18+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 22.54% (lower mid).
  • 3Y return: 27.77% (upper mid).
  • 1Y return: 17.45% (lower mid).
  • Alpha: -6.08 (bottom quartile).
  • Sharpe: 0.03 (bottom quartile).
  • Information ratio: 0.29 (top quartile).

Franklin India Opportunities Fund

  • Top quartile AUM (₹8,271 Cr).
  • Oldest track record among peers (26 yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 19.15% (bottom quartile).
  • 3Y return: 27.23% (upper mid).
  • 1Y return: 13.51% (bottom quartile).
  • Alpha: -1.01 (lower mid).
  • Sharpe: 0.12 (lower mid).
  • Information ratio: 1.66 (top quartile).

Franklin Build India Fund

  • Lower mid AUM (₹3,003 Cr).
  • Established history (16+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 22.67% (lower mid).
  • 3Y return: 26.21% (lower mid).
  • 1Y return: 17.13% (bottom quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.21 (upper mid).
  • Information ratio: 0.00 (upper mid).

SBI Healthcare Opportunities Fund

  • Upper mid AUM (₹3,823 Cr).
  • Established history (21+ yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: High.
  • 5Y return: 17.18% (bottom quartile).
  • 3Y return: 26.06% (lower mid).
  • 1Y return: 8.54% (bottom quartile).
  • Alpha: -2.03 (bottom quartile).
  • Sharpe: -0.46 (bottom quartile).
  • Information ratio: -0.15 (lower mid).

DSP India T.I.G.E.R Fund

  • Upper mid AUM (₹5,184 Cr).
  • Established history (21+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: High.
  • 5Y return: 23.39% (upper mid).
  • 3Y return: 25.38% (bottom quartile).
  • 1Y return: 18.57% (upper mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.08 (bottom quartile).
  • Information ratio: 0.00 (upper mid).

Invesco India Mid Cap Fund

  • Highest AUM (₹10,058 Cr).
  • Established history (18+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 19.76% (bottom quartile).
  • 3Y return: 25.30% (bottom quartile).
  • 1Y return: 18.00% (lower mid).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.35 (upper mid).
  • Information ratio: 0.00 (upper mid).

Canara Robeco Infrastructure

  • Bottom quartile AUM (₹879 Cr).
  • Established history (20+ yrs).
  • Not Rated.
  • Risk profile: High.
  • 5Y return: 22.80% (upper mid).
  • 3Y return: 25.27% (bottom quartile).
  • 1Y return: 18.13% (upper mid).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 0.13 (lower mid).
  • Information ratio: 0.00 (lower mid).
*Some of the Best equity funds are listed above sorted on last 3 year CAGR returns.

✅ Debt Mutual Funds

  • Slightly more risk than FDs, but better post-tax returns
  • Suitable for medium-term goals
  • Indexation benefits if held for 3+ years

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Credit Risk Fund Growth ₹22.5071
↓ -0.01
₹3631.33.78.788.78.64%2Y 3M 14D2Y 8M 1D
PGIM India Credit Risk Fund Growth ₹15.5876
↑ 0.00
₹390.64.48.43 5.01%6M 14D7M 2D
UTI Banking & PSU Debt Fund Growth ₹22.7962
↑ 0.01
₹1,07812.77.47.47.87.04%1Y 1M 10D1Y 2M 19D
Aditya Birla Sun Life Savings Fund Growth ₹571.703
↑ 0.19
₹22,8571.337.27.47.46.81%5M 19D6M 11D
HDFC Banking and PSU Debt Fund Growth ₹23.8083
↑ 0.00
₹5,6200.62.677.37.57.26%3Y 1M 17D4Y 5M 1D
Aditya Birla Sun Life Money Manager Fund Growth ₹385.627
↑ 0.09
₹28,8161.32.877.47.46.62%6M 11D6M 11D
HDFC Corporate Bond Fund Growth ₹33.6173
↓ -0.01
₹33,2070.52.46.87.67.37.36%4Y 5M 19D7Y 8M 16D
Aditya Birla Sun Life Corporate Bond Fund Growth ₹116.743
↓ -0.06
₹28,2530.62.56.87.67.47.12%4Y 10M 24D7Y 6M 14D
ICICI Prudential Long Term Plan Growth ₹38.123
↓ -0.02
₹14,8261.12.46.67.57.27.82%5Y 8M 26D13Y 6M 14D
Indiabulls Liquid Fund Growth ₹2,625.79
↑ 0.39
₹1691.42.96.36.96.66.62%1M 1M
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Mar 26

Research Highlights & Commentary of 10 Funds showcased

CommentaryAxis Credit Risk Fund PGIM India Credit Risk FundUTI Banking & PSU Debt FundAditya Birla Sun Life Savings FundHDFC Banking and PSU Debt FundAditya Birla Sun Life Money Manager FundHDFC Corporate Bond FundAditya Birla Sun Life Corporate Bond FundICICI Prudential Long Term PlanIndiabulls Liquid Fund
Point 1Bottom quartile AUM (₹363 Cr).Bottom quartile AUM (₹39 Cr).Lower mid AUM (₹1,078 Cr).Upper mid AUM (₹22,857 Cr).Lower mid AUM (₹5,620 Cr).Top quartile AUM (₹28,816 Cr).Highest AUM (₹33,207 Cr).Upper mid AUM (₹28,253 Cr).Upper mid AUM (₹14,826 Cr).Bottom quartile AUM (₹169 Cr).
Point 2Established history (11+ yrs).Established history (11+ yrs).Established history (12+ yrs).Established history (22+ yrs).Established history (11+ yrs).Established history (20+ yrs).Established history (15+ yrs).Oldest track record among peers (29 yrs).Established history (16+ yrs).Established history (14+ yrs).
Point 3Top rated.Rating: 5★ (top quartile).Rating: 5★ (upper mid).Rating: 5★ (upper mid).Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderately Low.Risk profile: Moderately Low.Risk profile: Low.Risk profile: Moderately Low.Risk profile: Moderately Low.Risk profile: Moderate.Risk profile: Low.
Point 51Y return: 8.69% (top quartile).1Y return: 8.43% (top quartile).1Y return: 7.44% (upper mid).1Y return: 7.16% (upper mid).1Y return: 7.05% (upper mid).1Y return: 7.04% (lower mid).1Y return: 6.83% (lower mid).1Y return: 6.76% (bottom quartile).1Y return: 6.60% (bottom quartile).1Y return: 6.33% (bottom quartile).
Point 61M return: 0.70% (upper mid).1M return: 0.27% (bottom quartile).1M return: 0.51% (lower mid).1M return: 0.52% (lower mid).1M return: 0.55% (upper mid).1M return: 0.49% (bottom quartile).1M return: 0.65% (upper mid).1M return: 0.74% (top quartile).1M return: 0.72% (top quartile).1M return: 0.46% (bottom quartile).
Point 7Sharpe: 2.08 (upper mid).Sharpe: 1.73 (upper mid).Sharpe: 1.05 (lower mid).Sharpe: 2.17 (top quartile).Sharpe: 0.36 (bottom quartile).Sharpe: 1.91 (upper mid).Sharpe: 0.24 (bottom quartile).Sharpe: 0.22 (bottom quartile).Sharpe: 0.37 (lower mid).Sharpe: 2.72 (top quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: -0.70 (bottom quartile).
Point 9Yield to maturity (debt): 8.64% (top quartile).Yield to maturity (debt): 5.01% (bottom quartile).Yield to maturity (debt): 7.04% (lower mid).Yield to maturity (debt): 6.81% (lower mid).Yield to maturity (debt): 7.26% (upper mid).Yield to maturity (debt): 6.62% (bottom quartile).Yield to maturity (debt): 7.36% (upper mid).Yield to maturity (debt): 7.12% (upper mid).Yield to maturity (debt): 7.82% (top quartile).Yield to maturity (debt): 6.62% (bottom quartile).
Point 10Modified duration: 2.29 yrs (lower mid).Modified duration: 0.54 yrs (upper mid).Modified duration: 1.11 yrs (upper mid).Modified duration: 0.47 yrs (top quartile).Modified duration: 3.13 yrs (lower mid).Modified duration: 0.53 yrs (upper mid).Modified duration: 4.47 yrs (bottom quartile).Modified duration: 4.90 yrs (bottom quartile).Modified duration: 5.74 yrs (bottom quartile).Modified duration: 0.08 yrs (top quartile).

Axis Credit Risk Fund

  • Bottom quartile AUM (₹363 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 8.69% (top quartile).
  • 1M return: 0.70% (upper mid).
  • Sharpe: 2.08 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 8.64% (top quartile).
  • Modified duration: 2.29 yrs (lower mid).

PGIM India Credit Risk Fund

  • Bottom quartile AUM (₹39 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: Moderate.
  • 1Y return: 8.43% (top quartile).
  • 1M return: 0.27% (bottom quartile).
  • Sharpe: 1.73 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 5.01% (bottom quartile).
  • Modified duration: 0.54 yrs (upper mid).

UTI Banking & PSU Debt Fund

  • Lower mid AUM (₹1,078 Cr).
  • Established history (12+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 7.44% (upper mid).
  • 1M return: 0.51% (lower mid).
  • Sharpe: 1.05 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.04% (lower mid).
  • Modified duration: 1.11 yrs (upper mid).

Aditya Birla Sun Life Savings Fund

  • Upper mid AUM (₹22,857 Cr).
  • Established history (22+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.16% (upper mid).
  • 1M return: 0.52% (lower mid).
  • Sharpe: 2.17 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.81% (lower mid).
  • Modified duration: 0.47 yrs (top quartile).

HDFC Banking and PSU Debt Fund

  • Lower mid AUM (₹5,620 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.05% (upper mid).
  • 1M return: 0.55% (upper mid).
  • Sharpe: 0.36 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.26% (upper mid).
  • Modified duration: 3.13 yrs (lower mid).

Aditya Birla Sun Life Money Manager Fund

  • Top quartile AUM (₹28,816 Cr).
  • Established history (20+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.04% (lower mid).
  • 1M return: 0.49% (bottom quartile).
  • Sharpe: 1.91 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.62% (bottom quartile).
  • Modified duration: 0.53 yrs (upper mid).

HDFC Corporate Bond Fund

  • Highest AUM (₹33,207 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 6.83% (lower mid).
  • 1M return: 0.65% (upper mid).
  • Sharpe: 0.24 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.36% (upper mid).
  • Modified duration: 4.47 yrs (bottom quartile).

Aditya Birla Sun Life Corporate Bond Fund

  • Upper mid AUM (₹28,253 Cr).
  • Oldest track record among peers (29 yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 6.76% (bottom quartile).
  • 1M return: 0.74% (top quartile).
  • Sharpe: 0.22 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.12% (upper mid).
  • Modified duration: 4.90 yrs (bottom quartile).

ICICI Prudential Long Term Plan

  • Upper mid AUM (₹14,826 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 6.60% (bottom quartile).
  • 1M return: 0.72% (top quartile).
  • Sharpe: 0.37 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.82% (top quartile).
  • Modified duration: 5.74 yrs (bottom quartile).

Indiabulls Liquid Fund

  • Bottom quartile AUM (₹169 Cr).
  • Established history (14+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.33% (bottom quartile).
  • 1M return: 0.46% (bottom quartile).
  • Sharpe: 2.72 (top quartile).
  • Information ratio: -0.70 (bottom quartile).
  • Yield to maturity (debt): 6.62% (bottom quartile).
  • Modified duration: 0.08 yrs (top quartile).
*List of top performing debt funds in India

✅ Public Provident Fund (PPF)

  • 15-year lock-in, but completely tax-free returns
  • Government-backed safety + decent inflation-beating returns

✅ National Pension System (NPS)

  • Long-term retirement corpus
  • Tax benefits under 80CCD(1B)
  • Partial equity exposure + annuity options

✅ RBI Bonds & Tax-Free Bonds

  • Offered by government bodies
  • Safer than corporate Bonds
  • Interest is often tax-efficient

Conclusion: Is an FD Still the Safest Way to Grow Money?

Safety? Yes. Growth? Not necessarily.

FDs still have a place in your portfolio—but only if used strategically. For short-term safety and capital preservation, FDs are great. But if you're looking to build wealth, beat inflation, and optimise taxes, it’s time to explore better options.

Smart Investing = balancing safety, growth, and liquidity.

FAQs

1. Can FDs beat inflation?

A: Not usually. Most FD rates barely match inflation after tax.

2. Is FD interest taxable?

A: Yes. It’s taxed as per your income slab under the old tax regime.

3. Are mutual funds riskier than FDs?

A: Yes, but they have the potential to give higher inflation-adjusted returns over the long term.

About the Fincash Research Team

At Fincash, our mission is to help investors make informed, confident decisions. With over 10 years in Mutual Fund distribution, our team blends deep industry expertise with a commitment to transparency, accuracy, and investor education.

Who We Are

AMFI Registration No.
112358
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U74999MH2016PTC282153
Location
Thane, Maharashtra, India
Experience
10+ years in Mutual Fund distribution

Our Expertise

  • Certified Mutual Fund Distributors with hands-on advisory experience.
  • Market analysts tracking performance, macro trends, and sectors.
  • Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

Our Research Process

  • Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
  • Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
  • Expert review: Senior team members review every article and list for accuracy.
  • Updates: Regular refreshes so performance data reflects current market conditions.

Why Trust Us

  • Regulated & compliant: AMFI-registered and MCA-incorporated.
  • Investor-first: No pay-to-promote lists; suitability and performance drive coverage.
  • Education-focused: We simplify complex concepts for everyday investors.

Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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