I have 15lac amount at present. I am looking to invest in FD. But i need advice whether FD is Better or Mutual fund or any other. please suggest
Ans: This will entirely depend on your risk profile, investment horizon, liquidity requirements and your tax bracket.
If FDs and MFs are being compared, then Debt Mutual Funds would be comparable from risk-return perspective to FDs. If you choose the correct category of Debt MFs, then from the perspectives of returns, liquidity and flexibility, Debt MFs would score better. If you stay invested for more than 3 years, you would save a huge amount of tax vis-à-vis FDs. As far as safety is concerned, please choose the correct category like Banking & PSU Funds, and similar categories if you want similar sfety to FDs.
