Which offers better post-tax returns between FD & debt funds for NRIs?

FDs offer stable returns, while debt mutual funds invest in fixed-income securities and provide diversification and liquidity. Eligible NRE deposits may suit NRIs seeking predictable, tax-exempt Indian income while debt funds offer tax deferral until redemption and may deliver higher returns. The debt fund may perform better than an NRO FD due to higher pre-tax returns and greater compounding.