High Return Mutual Funds Or Safe return Fixed Deposit? Where to Invest and Why?


Want to get more return on your hard earn money and want to know who gives the best return FD or Mutual fund? Let’s see

Today every people want a little bit of extra return on their hard-earned money.

Who does not want to have some extra bucks on static money? Obvious everyone does, right?

Why not think when we have so many options available around.

But today we will talk about two options to part your money into that. We will see which one is better and why?

We will talk about FD aka fixed deposit and another one is Mutual fund.

We will see among these two which is the better option of investment in terms of saving and return?

First, let’s discuss briefly these two investment options


What is FD?

FD is a fixed deposit, where one lump sum amount is parked into some bank for a specific period of time. In return for that money, the bank provides some interest on that money and on maturity, time bank returns lump sum amount plus interest money to the investor


What is Mutual Fund?

A mutual fund is a fund made up of lots of individual funds from so many companies. Mutual funds are created by the fund manager. Fund managers choose the companies and the percentage of assets of that company to make.


Comparison between FD and Mutual Fund

Have a look between these two investment options and then you can decide by yourself to invest your money

Below are the differences:

  • FD is investing option created by Bank, whereas a Mutual fund is not a banking scheme.
  • There are generally 3-4 types of FD like normal FD, Tax saving FD whereas Mutual funds are so many types, liquid mutual funds, tax-saving funds, debt fund, etc.
  • The rate of interest is decided by Bank. All the banks almost have the same rate of interest whereas the rate of interest is decided by market means the performance of the company.
  • Guaranteed return in case of FD, as the interest rate is disclosed to the investor at the time of investing whereas there is no guarantee of return in mutual fund as it depends upon the market.
  • Like tax saving FD there is a tax saving mutual fund called ELSS.
  • In both investments, the investor has to pay TDS on maturity amount except tax saving investment means there is no TDS to pay on tax-saving FD and ELSS mutual fund.


Which one is better FD or Mutual Fund?  

So, if we compare the above points, we will reach some conclusions that

If anyone needs more security then definitely, go with a fixed deposit.

If security is not important, and a person can take a risk to some extent then obviously go with Mutual funds which will give more returns.

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