For people who are fifty years or older, doubling of money via investment in Term Deposits or Recurring Deposit every nine years was normal. now it's not possible if one invests in RD and FD. The emergence of debt ETFs and Debt Mutual funds probably havent been taken note of by people who have been traditionally investing in bank fixed deposits and company deposit schemes. Quietly regulation has started penalising/discouraging people by limiting tax free interest from deposits to be only INR.10000/-. all interest payments received more than INR.10000/- are taxed as income in the IT returns. simultaneously regualtion has made investing in Debt mutual funds and Debt ETFs favourable to people,by way of Indexation benefits to the yearly inflation rate. There has not been adequate publicity given to these initiatives which can be known by reading business newspapers and magazines and books. The investment advisors who get paid for their services can enlighten the investors about it,dont know whether it's being done or not. Most of the debt funds are used by corporates to park shortterm money to get returns,which otherwise would be idling in their accounts.
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