Two options that have always confused us when it comes to saving are Mutual Funds and Fixed Deposits. After all, these two are the most popular options among investors for future savings. Let’s understand the crucial differences between the two to align your financial goals efficiently.
- ROI: Money deposited in a fixed deposit will only earn a fixed amount of interest over a certain duration. Whereas, Investing in mutual funds might get higher returns since any investments they make are based solely on the market performance of their portfolio of financial investments.
- Risk: Investment through Fixed Deposits involves zero risk as investors know before what their investment will yield at the end of a specific period. A mutual fund, however, is prone to market fluctuations although the amount of risk involved is dispensed over several financial instruments.
- Withdrawal: You will have to forfeit a portion of your return if you withdraw your investment in Fixed Deposits. Mutual funds permit premature withdrawals as long as the holding period has been met.
- Cost: There are no expenses as there is no intermediary involved in fixed deposits, whereas mutual funds come with certain fees that are paid to fund managers.
For more information on investment assets, you can rely on Future Value, a pool of financial experts that can guide you through this and help you in your investment journey.
How should women plan for their retirement?
There was a time when women were dependent on their spouses for financial assistance but now the time has changed drastically. Women are independent and know the importance of wealth management. Also, the growing expenses compel everyone to find a source of income. Here’s why and how women should judiciously plan for their retirement:
- As per WHO, women’s life expectancy is more than that of their husbands. If you lose your husband, you’ll have to rely on others for financial support.
- The sooner your start your investment, the bigger wealth you create for future security.
- Having Life insurance is essential in today’s unprecedented times as it makes your living better.
- You can choose the easiest way of investment: SIP for accumulating wealth without burning holes in the pocket.
- You can also go for National Pension Scheme if you wish to keep your investment simple and risk-free.
For more information on investment assets, you can rely on Future Value, a pool of financial experts that can guide you through this and help you in your investment journey.
