The question is more around long term investment - min 5 years.
How to decide between the mutual funds which are investing in govt security and corporate bonds.
The only reason i have a doubt in govt securities is around the interest rate risk, but I guess that fades away. However at the same time, corporate bonds tends to give higher rate of interest, and if you are choosing the AAA rated bonds, then is the risk at the same level as govt securities?
P.S. i am still a beginner here in investment. As far as I have read, we shouldn’t care about the ROI incase of debt part of your investments, but at the same time, we say that putting money in FD is just waste. So , wanted to understand where should anyone draw the line there.