Jul 23, 2024
FDs vs. Mutual Funds: Choosing the Right Investment
A fixed deposit is a secure investment with a fixed interest rate for a set term, where you receive the principal and interest at maturity
FDs suit risk-averse investors, seniors, short-term savers, and taxpayers seeking deductions
A mutual fund pools money from investors to invest in a diverse portfolio managed by professionals, either actively or passively tracking a market index
Mutual funds are ideal for higher returns, diversification, long-term investing, and taxpayers seeking exemptions with ELSS
FDs offer fixed interest rates and are provided by banks, while mutual funds invest in market assets for variable returns and are offered by fund houses
Investing boosts wealth and income, but balance risk with your financial readiness and diversify across various options
Mutual funds usually offer higher returns and tax advantages compared to FDs, with varied risk levels
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