You don’t lose even a day’s growth
You don’t lose even a day's growth when you invest in an open-ended debt fund. If you invest in a fixed deposit or a closed-ended debt mutual fund, you get a lump sum amount at the end of the term. Hectic work schedules and busy lifestyles mean you may take some time to encash the fixed deposit and then reinvest the proceeds. In a debt mutual fund, there is no such problem because the investment never stops growing till you redeem it.