With half of the total investors opting for FD and the other half going with equity, there is a big confusion for every new investor. They always have this question: FD or equity investment, which is better? If you have the common question, here is the answer.
Return on investment: FDs offer interest gains up to 8% on investment, and the best part- the interest gain is 100 percent assured. Whereas investing in equities can get you up to 12% gains, but it’s more like gambling. If your luck fails to play by your side, you don’t even get back what you invested.
Tenor flexibility: Every investment requires time to ensure a decent growth and a decent profit. In case of equities, the investment period can test your patience, whereas, you can invest for a minimum of 60 days and earn interest gains.
Liquidity: Equities are known for higher liquidity which means you can withdraw money whenever you want. FDs are also good in terms of liquidity, but premature closure is charged with a penalty.
Market fluctuation effect: FDs remain unaffected by market fluctuations and you get the assured sum upon maturity, FD is the best option for start investing. On the other hand, with equities, you can lose a significant amount of money even with slightest market fluctuations.
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.