The risk, particularly in buying a single bond, and for 1 year, to earn good returns is more, compared to buying a debt fund which holds many bonds. Even with a debt fund, there is a chance of losing some return due to a credit rating downgrade. And here, it is already at BBB, hence the 10.6% return. For a tenure of 1 year, it is better to go with a simple FD, despite the lower returns.
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