Fixed Deposit Vs Mutual Funds

Let's understand here difference between FDs and Mutual Funds

Returns

FDs - Fixed Interest Rate Mutual Funds - Market linked performance

Risk

FDs - Often low Mutual Funds - Low to High, depending on the type

Expense

FDs - No expenses Mutual Funds - entail an expense ratio

Liquidity

FDs - Low Mutual Funds - Generally high

Investment amount

FDs - Specified minimum amount, often no maximum Mutual Funds - Specified minimum amount, often no maximum

Tenure

FDs - Fixed tenure (1 to 10 years) Mutual Funds - depends on investor preference

Taxation

FDs - Taxable as per the criteria Mutual Funds - Taxable as per the criteria

Fund management

FDs - No Fund manager required Mutual Funds - requires a Fund manager

Regulating Authority

FDs -Reserve Bank of India (RBI) Mutual Funds - Securities and Exchange Board of India(SEBI)

Thank you for reading