Which investment is better debt or equity?
Debt investments tend to be less risky than equity investments but usually offer a lower but more consistent return. They are less volatile than common stocks, with fewer highs and lows than the stock market. The bond and mortgage market historically experiences fewer price changes, for better or worse, than stocks.
Is ELSS a debt fund?
What is ELSS Mutual Funds? Equity-Linked Saving Scheme (ELSS), commonly referred to as the tax-saving funds, fall under the diversified category of mutual funds. While their maximum exposure is towards equity and equity-oriented securities, a part of the corpus is also invested in debt instruments.
Which debt fund gives highest return?
The table below shows the best-performing debt funds based on the last 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| DSP Healthcare Fund – Direct – Growth | — | 32.97\% |
| Aditya Birla Sun Life CEF – Global Agri Plan – Growth-Direct Plan | 9.33\% | 16.18\% |
| ICICI Prudential Multicap Fund – Dividend | 14.3\% | 14.92\% |
Which is more risky equity or debt?
The main distinguishing factor between equity vs debt funds is risk e.g. equity has a higher risk profile compared to debt. Investors should understand that risk and return are directly related, in other words, you have to take more risk to get higher returns.
Can debt funds give negative returns?
Debt funds are giving negative returns due to fluctuations in interest rates. Debt funds of longer maturity are vulnerable to interest rate risk.
What is the safest bond fund?
The three types of bond funds considered safest are government bond funds, municipal bond funds, and short-term corporate bond funds.
Which category of debt fund is best?
Short-term debt funds may be best suited for those with low to moderate risk appetite. These funds perform best when the interest rates are high. If you have money to invest form 9 to 12 months and have a low-to-moderate risk appetite, short-term funds can be a great investment option.
Is debt bad or good?
Too much debt can turn good debt into bad debt. You can borrow too much for important goals like college, a home, or a car. Too much debt, even if it is at a low interest rate, can become bad debt. Carrying debt without a good plan to pay it off can lead to an unsustainable lifestyle.
Do ELSS funds give better returns than PPF?
So where PPF returns average around 8\%, tax saving ELSS mutual funds have the potential to deliver a much superior return – a 12\% to 15\% average returns is possible, but not guaranteed. And the top best ELSS funds have given much better returns than these average returns.
Should you invest in PPF or ELSS?
People wanting to keep their money safe and gain a steady return should probably invest in PPF. People with low risk-taking capacity should invest in PPF, whereas aggressive investors should like to invest in ELSS. However, PPF gives out high returns at low risk, so it has an advantage in this regard.
How to select the best mutual funds to invest?
Identify Your Goals&Risk Tolerance. Mutual funds were designed to cater to specific investors.
What are the best focused funds to invest?
IIFL Focused Equity Fund