1. Having only Bank FDs in their long-term Debt portfolio would suit those investors who:-
a) Earn at lowest tax slab,
b) Earn interest within Sec 80TTA/B limit,
c) Don't need to setoff capital gains and losses in tax returns,
d) Don't mind paying annual TDS on invested but unutilized Debt corpus and claiming tax refund every year,
e) Don't avail SIP, SWP and STP facility from their Debt corpus for various purposes,
f) Prefer separate Debt entities of each investment to monitor, mature, reinvest or break during emergencies.
2. For other investors, Debt funds in their Debt portfolio are more suited for availing above benefits too.
a) Earn at lowest tax slab,
b) Earn interest within Sec 80TTA/B limit,
c) Don't need to setoff capital gains and losses in tax returns,
d) Don't mind paying annual TDS on invested but unutilized Debt corpus and claiming tax refund every year,
e) Don't avail SIP, SWP and STP facility from their Debt corpus for various purposes,
f) Prefer separate Debt entities of each investment to monitor, mature, reinvest or break during emergencies.
2. For other investors, Debt funds in their Debt portfolio are more suited for availing above benefits too.