5 Reasons to choose Mutual funds than Bank Fixed Deposits
We don’t need to forget the Old things. It is a record book of our past. There is nothing wrong with selecting the old things, but we must go forward in Technology and Economy today.
Even in the economy, i often hear this developmental shift. I have heard my friends too. When our Income, Taxes and Prices are climbing, then why should we put so much depend with our old Deposits(Bank Deposits) ?
The Interest rates of Bank Deposits are declining every quarter. It’s not the bank’s problem on Interest rates. This is the decision of Central Bank will take based on Inflation Data.
If we think that the Bank Deposits are safe investment avenues, how many times have we tried this safe avenues in our life and would have benefited ? If any other avenues apart from Bank Deposits are Risky and Volatile, then why should we be interested in buying Golds ?
As our Income grows, Our Bank Fixed Deposits often tends to pay more Tax on Maturity or Tax Deducted at Source. After the Tax paid, the amount we receive cannot even be adjusted for Inflation.
Those, who haven’t tried the Bank Deposits, can try it one time. Who have already seen it can take account and need for a change – It’s Mutual Funds.
Situation Changed. Mutual Funds comes with a combination of Different Investment avenues like Chit Funds, Postal Recurring Deposits, Bank Fixed Deposits, Corporate Bonds, Debentures, Real Estate Options, etc.
Even though Debt Funds have been in trouble on these days, still it is an attractive to invest in mutual funds with different investment objectives. One must choose the appropriate funds based on their Goals with Investment Horizon.
Reasons to invest in Mutual Funds:
- Risk & Return is better than Fixed Deposits
- Choice of Different Funds Schemes in a Single Place
- Opportunity to invest in International Equity
- Indexation Benefit on Tax
- Liquidity is good. We can withdraw any amount partially in a Mutual Fund Scheme.
Minimum Lock in period is available in Mutual Funds – Equity Linked Savings Scheme (ELSS). We can invest in funds based on our Goal Planning. Even the returns are vary in some funds, we can beat the Inflation too, in a long term.
Kindly share your views / comments with a smile 🙂