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

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FDs suit risk-averse investors, seniors, short-term savers, and taxpayers seeking deductions

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A mutual fund pools money from investors to invest in a diverse portfolio managed by professionals, either actively or passively tracking a market index

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Mutual funds are ideal for higher returns, diversification, long-term investing, and taxpayers seeking exemptions with ELSS

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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

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Investing boosts wealth and income, but balance risk with your financial readiness and diversify across various options

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Mutual funds usually offer higher returns and tax advantages compared to FDs, with varied risk levels

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