indexation

What returns should you expect from your debt funds?

The last two years of turmoil in the debt fund space may have left you wondering what returns to expect from debt funds. Will debt funds beat FD? Or would their returns hover somewhere around their yield (yield to maturity) as promised by some? Are double-digit returns possible in debt? Use this analysis to set more realistic expectations from debt funds instead of a vague 8% or 9% return you may have in mind.

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Indexation in debt funds – pay little or no tax

Cost inflation index benefit makes the post-tax return of debt funds far superior to fixed deposits. Please note that debt fund taxation has undergone a change. Indexation benefit will not be available for investments made from April 1, 2023 onwards. You can read about this in our article, ‘Tax changes in mutual funds: How to

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