Investing in Fixed Deposits (FDs) and Mutual Funds is one of the smartest ways to grow your wealth while ensuring financial security.
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FDs are low-risk with guaranteed returns, while Mutual Funds offer higher returns but involve market risks. The choice depends on your financial goals.
FDs typically start from ₹1,000, while Mutual Funds can be started with as low as ₹500 (SIP plans).
Yes, the interest earned is taxable, but Tax-Saving FDs (5-year tenure) offer deductions under Section 80C
For low risk, Debt Mutual Funds are ideal. For higher returns, Equity Linked Savings Schemes (ELSS) or Index Funds are recommended.
FDs may have penalties for early withdrawal, while Mutual Funds offer better liquidity, especially in open-ended funds.