Mutual Funds vs. FD/RD: Which Investment is Right for You?

• FDs and RDs offer traditional safety with assured but lower returns (6-7%), making them suitable for risk-averse investors.
• Mutual funds, especially equity-based, can provide significantly higher long-term returns (12-15%) but come with higher market risk.
• Inflation can erode the real returns of FDs and RDs due to their fixed, lower interest rates.
• SIPs (Systematic Investment Plans) can help mitigate market volatility when investing in mutual funds.
• A hybrid strategy combining FDs/RDs for stability and mutual funds for growth is often recommended by experts.

Why It Matters: Choose FD/RD for safety and assured returns, or mutual funds for higher growth potential and inflation-beating returns.