Debt investments that still make sense in a falling rate cycle
Last Update Date: 06-10-2026
Published by Mint
Abhishek Kumar's role: Quoted
Abhishek Kumar said fixed deposits can be part of a short-term debt portfolio but do not suit a core holding, given their lower post-tax yields than debt funds.
More of Abhishek's views on saving and deposits
With the RBI cutting the repo rate to 5.25% in December 2025 and banks lowering deposit rates, the article reviews debt options for short- and long-term needs. It covers fixed deposits, small savings schemes such as PPF, SSY and SCSS, debt funds, arbitrage-based funds and the tax treatment that shapes the choice between them.
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Debt investments that still make sense in a falling rate cycle