In the present time, the is a high requirement to have reserve finance for emergencies. Investing a portion of an income has now become a necessity (1). This way, one can also grow their money to beat inflation. There are several options available today including fixed deposit where people can make their investments.
These options promise high returns and also comes with risks of money loss. Hence, an in-depth evaluation of these methods is crucial. There are investment options that promise sky-high returns but come with more significant risks. There are investing methods available that promise assured returns, but the growth of capital is meager.
Nonetheless, if you are looking for a sufficient balance that gives you high growth and assured return, investing in a Fixed Deposit is a great option.
Why Fixed Deposit is a Better Alternative?
There are constant swinging of stock and volatilities in the market. Hence, investing in market-linked instruments comes with a significant risk of capital loss.
In the current scenario, the market is highly volatile. It has a high risk of capital loss and investments. Inequity share, your return depends on market forces, which is very volatile in the present time. There is no collateral security when it comes to equity shares and has high risk. Similarly, investment in mutual funds is also dependant on market forces. There are also high fund management fees involved.
Whereas with fixed deposits, the return is fixed with some assurances provide a guarantee for your returns. Banks, post offices, or NBFCS invest in a Fixed deposit, and they are risk-free. This mode of investment has the highest control. With a fixed deposit, you can also forecast your returns. In FD, investors don’t have to pay any additional fees to initiate or during the tenure of your deposit.
If you are an investor seeking safe returns, then investing in a fixed deposit is a smarter option in current time. Make sure to select a reputed issuer and evaluate thoroughly for a maximum return.