How can I get better returns than an FD?

I am absolutely new to mutual funds and looking to invest to make better returns than typical FD returns. Since I am a first-time investor, seek your guidance to investing in mutual funds with a horizon of one to three years, with either low risk or moderate risk. Also, if you could suggest the best way to learn about mutual funds.
-- Ashtamoorthy Kanjur

If you are absolutely new to mutual funds, you should seek the help of a mutual fund advisor to help you with your investments.

Since you have an investment horizon of one to three years, you may consider investing in debt mutual funds. These funds may offer marginally higher returns than fixed deposits. If you are investing for less than three years, returns are taxed exactly like interest on fixed deposits. If you are investing for more than three years, debt mutual funds offer better post-tax returns. Investments in debt funds held for more than three years qualify for long-term capital gains tax of 20 per cent with indexation benefit.


Also read: Know your debt mutual fund schemes better

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