Difference between RD & FD savings & mutual fund savings..?

Sowmiya Sriram
Difference between RD & FD savings & mutual fund savings..?

It is known that people in india have increased their saving capacity in the last few years. people are saving for their future security in various ways including fixed deposits called FD, recurring deposits called RD, and mutual funds. But at the same time, the advice of financial advisors is to save their hard-earned money in proper investments.
Now let's see what is the difference between investing in RD and FD and investing in Mutual Funds. It was mentioned that RD which is called Recurring Deposits and FD which is called Fixed Deposits is popular in our country and more people are saving in them.
People are using these types of savings which provide safe and guaranteed income. Individuals opting for these types of savings depend on what they expect in the future. RD and FD types of savings are ideal if an investor only aims to keep his investment safe regardless of the annual increase in inflation and taxes.
It is worth noting that FD is a major investment that we make without any risk and earns a certain percentage of return every year, while RD is a type of savings that sets a target to save a certain amount of money every month.But at the same time if an investor compares his investment with inflation and taxes then the above two savings may not be correct.
For such people, mutual funds are the perfect type of savings. It is mentioned that the interest rate from RD and FD will only give us a loss due to rising inflation and taxes. So it has been mentioned that if we invest in mutual funds managed by the right financial advisor and managed by the right fund manager, our income will increase even as inflation and taxes increase. So not only considering the security of our investment but also our investment is giving proper returns? Financial advisors are suggesting that it is wise to invest in mutual funds after thinking about it.
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