FD vs. Mutual Funds: Where Should You Park Your Money
Fixed Deposits (FDs) offer guaranteed returns and capital safety, making them ideal for conservative investors. They’re low-risk but provide relatively lower returns, typically 5–7% annually. Mutual Funds, on the other hand, are market-linked and come with higher risk but the potential for better returns—ranging from 8–15% or more, depending on the type (debt, equity, or hybrid). If your goal is capital protection with stable income, FDs suit you. But for long-term wealth creation and beating inflation, mutual funds may be better. Choose based on your risk appetite, time horizon, and financial goals.