Not exact matches
They hold potential to offer much higher returns but are unpredictable and hence equity
mutual funds are riskiest when
compared to SCSS &
Debt funds.
The actual truth is that majority percent of assets under management of
mutual funds are
debt as
compared to equity.
These retirement planning options are a pure
debt instruments as
compared to
mutual fund pension scheme which has a kicker in the form of equity portion.
The
debt mutual funds can generate higher returns when
compared to Tax free bonds and you may redeem them anytime.
I got an email today from somebody asking about
comparing paying off
debt to investing in something like a
mutual fund.
This attitude is more pronounced towards equity
mutual funds as
compared to
debt or balanced
funds.
Since equity
mutual funds invest in shares of companies, they generally give potential returns over the long run as
compared to
debt funds.