Where to Invest ? Mutual Funds or Private Sector FDs?

I would like to invest Rs.30,000. Which option is good? Invest in pvt. sector FD’s or invest in mutual funds.

If you suggest pvt. sector FDs then which company is good and how much interest they give?

If you suggest mutual funds then which MF gives good returns after 2-3 years?

Do you suggest any Govt. Bonds?

Is there any other place to invest money where i can get good returns?

7 Replies to “Where to Invest ? Mutual Funds or Private Sector FDs?”

  1. Investment is Rs 30,000 only it seems.

    Better you invest in either Tata Mutual fund or SBI mutual fund
    single policy terms are available in LIC at ULIP based.

  2. Bond yields are attractive and given the fragility of the present market enviroment are an attractive and safe alternative investment.
    Given the recent rally and consolidation in emerging markets (especially in the 3 to 5 year projections), buying bonds, (or currency pairs) in emerging markets are an attractive and exiting prospect for investors willing to take on a bit more risk. However every investor is different and your risk tolerance and investment time frame are key variables in any decision on your part. It is always important though to diversify you capital.

    Hope this helps mate.

  3. You have to understand basic difference between investing in mutual funds and FDs.
    FDs are a way of earning guaranteed income. that is on the day of investment you know how much returns you are going to get after the term and you will get that for sure.
    In case of mutual funds, your investment may go down if share markets go down, the best example of this is for those who invested in the mutual funds during the times when BSE sensex was above 21000 are now at a loss of over 40% on an avg.
    The thing is those who invested in the same fund when the sensex was around 8000 have made double the money. So you can’t just judge the mutual fund by its performance. As it is dependent on the market conditions.
    It is your responsibility to decide whether you are ready to take that risk. If you plan to go for mutual funds and want some tax break then go for ELSS type.

  4. hi there !!

    I think you should invest in Mutual Funds rather than Private Sector FD’s. I think MAX New York MF and ICICI MF are doing good and are reliable… the returns are quite fair in these two companies….

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