Many Indian investors look upon FD as a haven for their hard earned income, even though the latest trend shows that India is heading for a measly interest of 2.5-3.5% on savings deposits and 5-7 % on other bank deposits. However, mutual funds ensure higher returns along with lower tax outgo as compared to banking products, thereby giving attractive returns on your investments. Savepro will give us a detailed explanation. Tune in!
Returns FDs offer fixed returns at a predetermined rate of interest over a specific period, whereas returns on mutual fund investments have an inherent potential to grow depending upon the performance of stocks in the market. Risk FD investments are risk-free, though they earn comparatively less returns. The amount of risk involved in mutual funds is spread over a range of stocks within the fund, but the investor stands a chance to gain more in favourable market conditions. Costs Investments in mutual funds incur expenses in the form of fees to be paid to the fund managers to take care of your investment portfolio. FD investments do not incur such expenses as no intermediaries are required to take care of the investment process. Liquidity Premature withdrawal of fixed deposits calls for a penalty along with forfeiting a portion of returns earned. The same is easy in case of mutual funds as long as the investment completes a stipulated minimum holding period, if not, incurs load charges of 1% of the investment amount. Tax Benefits In the case of FD, all earnings on the deposits are taxable depending on the tax slab to which the individual belongs. In case of the mutual fund, long-term equity funds over INR 1 lakh are subject to 12% tax and short-term capital gains will be charged 15%, while long-term debt funds will be charged 20% after indexation and short-term capital gains fund will be charged as per the tax slab. Also Read : Mutual Fund Vs Sip
2 Comments
8/1/2022 06:06:06 pm
Tiktok beğeni satın alarak artık fenomen olmanız çok kolay! Birbirinden avantajlı tiktok beğeni satın al paketleri ile istediğiniz beğeni takipçisine ulaşabileceksiniz. Güvenli satın alma yöntemleri sayesinde Tiktok’ta yüksek beğeni sahibi olmak mümkün.
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