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Comparison between Mutual Fund and Bank Fixed Deposit

comparison between bank fd and mutual fund investments

May 20, 2014 by A Varadarajan, Namakkal  |   Mutual Fund

We should compare Bank FDs with debt funds of Mutual Funds, since the objectives are similar (i.e. Income generation). FDs should not be compared with equity mutual funds, because objectives are different. The objective of equity mutual funds is capital appreciation, whereas the objectives of Bank FDs are capital protection and income generation. However it is true, many investors in India invest in Bank FDs, not for regular income, but for capital appreciation. This is due to extreme risk aversion and also lack of financial awareness. We have a number of articles, addressing this topic. Please refer to the following articles

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