MUTUAL FUND Vs. FIXED DEPOSIT

WHAT IS A MUTUAL FUND?

• It is a kind of investment plan. Your money is funded in a very no. of shares.

• Your money is managed by an acknowledgeable fund manager.

• There is some risk, but the fund manager assists in reducing risk and increasing returns. Even small investors get the advantage of experts' help.

WHAT IS FD?

• It is a kind of investment. It's offered by banks where they pay a decided amount of interest on your deposit.

WHAT IS A FIXED DEPOSIT?

Factor	Mutual Funds	Fixed Deposits
Return	The return isn't fixed and is higher since it's invested within the market	The return is fixed and low
Risk	There is an unusual risk as money is funded in a no of shares of various companies and is professionally manged	Zero Risk
Costs	Investor has got to pay Fund Manager's fees and a few other costs	There are not any costs
Early Withdrawal	Money can be usually withdrawn early if the mutual fund allows. 1% fee is commissioned for early withdrawal	There is a penalty on unusual withdrawal and no interest would be paid

THINGS TO REMEMBER

• Both Mutual Funds and Fix Deposits are good investment plans with advantages and drawbacks

• You can decide based on your necessities

Note: Investment in mutual funds are subjected to market risks. Please research well and compare various options before investing.