5 Replies to “Where to invest money for growth in yje Bank OR Mutual Funds ?”

  1. Bank will give you assured but fixed return. Mutual Fund can give you substantially higher, and potentially tax free, returns but not assured. If you want fixed income, then you can try Fixed Maturity Plans (FMP) of Mutual Funds. They give you returns higher than bank. Returns from FMP’s over 1 year maturity are tax free too.

  2. Mohinder, you choice of investment will depend on a lot of factor including your investment horizon (how long you want to invest for), your risk taking ability (you an take high risk, or want no risk), your investment goal.

    So if you ae looking for low-risk, low-return kind of thing, then bank is a good option. You can get yield of upto 7-8% (with taxes it wold be lower). You can also invest in debt schemes of mutual funds, that will give better returns than bank fixed deposits, as they tax low.

    If you can take risk and have a longer investment horizon, equity scheme of mutual funds is a good option, but if you want to take moderate risk, then a mutual fund MIP plan would be good.

    To understand which type of mutual fund scheme would be suitable for you, check this link: http://www.arihantcapital.com/knowledge-centre/mutual-funds.aspx#typesmutual

    Moreover, instead of Bank FD you can also invest in Corporate FDs, they are safe and offer much higher yield than banks. For more details, you could contact some good financial planner or investment advisor.

  3. investing in Bank is without any risk, return is low. While investing in Mutual Fund you
    have to select the good MF and also good scheme of the MF. Anyhow the returns depend
    on the index level of the share market.
    Common rule is 100 – age is the portion of risk we may undertake. If age is 40 the risk can be taken uptp 60%.

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