New Delhi, Aug. 20 -- Mutual Funds: Starting in February 2025, the Reserve Bank of India (RBI) began cutting the repo rate, and in three consecutive meetings - February, April, and June - the interest rates dropped by a total of 100 basis points from 6.5 to 5.5 percent in fewer than six months.

Commercial banks followed suit, and interest rates on fixed deposits (FDs) were subsequently slashed. As a result,investors now have slightly lower incentives to lock their funds in the term deposits.

The alternative? Investors can consider investing in debt mutual funds such as money market funds, corporate bond funds, andliquid funds, say experts.

Swapnil Aggarwal, Director of VSRK Capital, says, "With falling interest rates on savings account...