Before going in-depth discussion first lets understand the difference between these two investment solutions:
Mutual Funds:
involve a high amount of risk and their turnover rate is determined by the current market condition. There may be times when the market is doing really well and you may gain an immense amount of profits, but there are also times when the market does not perform so well and may even dip.
Hence mutual funds come with risk factors.
Fixed Deposit:
you have a constant fixed rate of interest which you know you will get. However, this amount remains fixed and does not increase.
Whereas if the market is performing really well, this may prove to be a disadvantage for fixed deposit investors as you may get higher returns on investing in mutual funds.
Let Compare the Mutual funds against Fixed Deposit:
For example, if you invest a certain amount in a fixed deposit for a certain period of time and at a fixed interest rate, you will enjoy the same benefit throughout the tenure of your investment. When it comes to investing in mutual funds there is no certainty of making any profit or gaining any returns. Mutual funds depend on the condition and performance of the market. So if the market goes up, the mutual fund will perform better and yield higher returns.
Also both the investment allows you to choose from its wide range of products:
Click here to check different types of Mutual Funds in India
Click here to check different types of Fixed Deposit .
If you are already an active investor please do share your thoughts on your investment experience.
Happy Investing :)
Mutual Funds:
involve a high amount of risk and their turnover rate is determined by the current market condition. There may be times when the market is doing really well and you may gain an immense amount of profits, but there are also times when the market does not perform so well and may even dip.
Hence mutual funds come with risk factors.
Fixed Deposit:
you have a constant fixed rate of interest which you know you will get. However, this amount remains fixed and does not increase.
Whereas if the market is performing really well, this may prove to be a disadvantage for fixed deposit investors as you may get higher returns on investing in mutual funds.
Let Compare the Mutual funds against Fixed Deposit:
For example, if you invest a certain amount in a fixed deposit for a certain period of time and at a fixed interest rate, you will enjoy the same benefit throughout the tenure of your investment. When it comes to investing in mutual funds there is no certainty of making any profit or gaining any returns. Mutual funds depend on the condition and performance of the market. So if the market goes up, the mutual fund will perform better and yield higher returns.
Also both the investment allows you to choose from its wide range of products:
Click here to check different types of Mutual Funds in India
Click here to check different types of Fixed Deposit .
If you are already an active investor please do share your thoughts on your investment experience.
Happy Investing :)
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