Mutual funds Vs. fixed deposits

Thanks for sharing this information. I personally prefer fixed deposit over mutual funds

Thanks for this information... I personally have more of my investments in mutual funds rather than fixed deposits....

I think that mutual fund is for very long term. Fixed deposits can also be used as a long term investment.
If you want to invest a large amount,i would rather suggest you to neither invest in mutual fund nor fixed deposit, but would rather invest in land.

But is Mutual funds risky?.I feel that investment in land is better.

mutual funds gives better return than Mutual fund if you stay invest for longer period

nagalakshmi.karunanidhi wrote:
[quote]But is Mutual funds risky?.I feel that investment in land is better.[/quote]

land and gold are actually not really regular investment mode. A monthly income earner will not invest in land or gold on a monthly basis. You will invest a part of your cash income only in cash: bank, mutual funds, LIC etc.

My suggestion is:

First take medical insurance policy. This will help you and family in event of hospitalization.

Second, take an accident insurance policy

Next, invest some part regularly, in mutual fund or bank recurring deposit. Provident fund of company or PPF can also be considered. You may also choose to invest direct in equity rather than mutual funds.

It will be prudent to hold about six month income in bank fixed deposit or saving account for any emergency requirement.

For advantages of mutual fund SIP, please see the link:

http://in.finance.yahoo.com/news/Understanding-Systematic-bankbazaar-250485108.html

Different Age group people have different types of Risk, so after analyzing the risk one can go either for Stock market,mutual fund and savings in banks

Nice explaination, thank you gulshan for sharing this

Thanks for this information.Some take risk and invest in MF while some others fear it and invest in FD.

soubhagya das wrote:
[quote]Different Age group people have different types of Risk, so after analyzing the risk one can go either for Stock market,mutual fund and savings in banks[/quote]

I agree. A younger person has a long term view and can take more risk. For a retired person, current cash is more important. One at the fag end of life need not invest for long period nor he should take risk.

Secondly, I feel that one should take risk for small amounts and be cautious for big amount. So, a ratio can be drawn: invest 25% of total investment in risk and 75% in safe investments. The ratio may vary based on individual perception.

Fixed deposits are garranted source of income. Certain part of the money should be invested through mutual funds depending on the age of the person. Young people with less responsibility should invest more than older people.

My personal experience with these forms of investment has been somewhat mixed.It's absolutely essential to have a sound grasp of the risks involved in various kinds of investment and one's needs and risk profile.I am very happy with my investments in equity.The principle I follow is doing some value buying when the market is deep in the red and exit when those are in profits with a medium to long term horizon.The average return works out to not less than 20% p.a.