Question

How does investing in a Debt Fund differ from investing in a fixed deposit or bond?

a.

Debt Funds offer higher returns

b.

Fixed deposits have higher market risk

c.

Debt Funds have a fixed rate of return

d.

Fixed deposits offer simplicity and security

Answer: (d).Fixed deposits offer simplicity and security Explanation:Investing in a fixed deposit provides simplicity and security, whereas Debt Funds involve market risk and are different from fixed deposits.

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Q. How does investing in a Debt Fund differ from investing in a fixed deposit or bond?

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