I want to put some money in a less risky instrument. I want to select between Arbitrage and Long term debt fund. Which one would you suggest?
Arbitrage funds and long term debt funds are of course less riskier than equity funds.
However, as far as Arbitrage funds are concerned the tax treatment is that of equity funds and the returns of Arbitrage funds can only be compared to liquid funds. Whereas, long term debt funds can give you better returns if you hold them for 2-3 years and may comfortably beat the returns of Fixed deposits.
To know more about Arbitrage Funds you can read the following articles on our website -
https://www.advisorkhoj.com/articles...
https://www.advisorkhoj.com/co...
To know more about Debt Funds please read here -
https://www.advisorkhoj.com/co...
https://www.advisorkhoj.com/articles...
To know about returns of Arbitrage Funds and debt Funds, check here –
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