Fixed deposit has been the most preferred investment avenues of Indians. Studies have shown that 95% of Indians preferring to park their money in fixed deposits. However, in mutual funds you can gain more interest. So, before deciding the best saving plan India, you need to study the benefits of both the investment plans. Benefits of Mutual Fund:
1. Small Amount Investment If you do not have a large sum of money or you do not want to take the risk, you can start investing in mutual funds with a small amount. You can set up a systematic investment plan (SIP) with a small amount of Rs.500 per month only. When your salary or cash inflows will increase, you can increase this amount. 2. Potential Inflation-adjusted Returns Mutual fund is one of the best long term investment plans, that generate inflation-adjusted returns. Generally, with inflation the value of wealth gets eroded with time. Mutual funds mainly equity-oriented funds, are better than the other asset classes as they have the best potential to generate inflation-adjusted returns in the long run. 3. Flexibility to Use You can use the mutual fund amount anytime you want to. In case of emergency, ultra-short duration funds are ideal for meeting short-term goals such as a vacation, home renovation, etc., or long term goals such as higher education, etc. you can use mutual fund. To know the benefits of a fixed deposit, read: http://onlinedrifts.com/fixed-deposit-vs-mutual-fund-which-saving-scheme-is-best-in-2018/
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About Author: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. Archives
August 2022
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