Fixed Deposit vs Mutual Fund
Compare the safety of FDs with the growth potential of mutual funds
Fixed Deposit vs Mutual Fund: Complete Comparison Guide
Confused between Fixed Deposit and Mutual Fund? You're not alone. This is one of the most common financial dilemmas. Our comprehensive comparison helps you understand the key differences, advantages, and disadvantages of both options. Compare the safety of FDs with the growth potential of mutual funds Use our comparison tool and calculators below to make an informed decision based on your financial situation, goals, and risk appetite. We'll help you evaluate both options objectively so you can choose what's best for you.
Side-by-Side Comparison
| Feature | Fixed Deposit | Mutual Fund |
|---|---|---|
| Risk Level | Medium to High | Low |
| Returns/Benefits | Variable | 5-7% annually |
| Liquidity | High | Medium |
| Best For | Specific goals | Capital safety |
Pros and Cons
Fixed Deposit
✓ Advantages
- Potential for higher returns
- Flexibility and control
- Tax benefits available
- Builds long-term wealth
✗ Disadvantages
- Market risk involved
- Requires discipline
- Returns not guaranteed
- Needs longer time horizon
Mutual Fund
✓ Advantages
- Lower risk profile
- Guaranteed returns
- Easy to understand
- Capital protection
✗ Disadvantages
- Lower returns
- Inflation impact
- Limited flexibility
- Opportunity cost
Frequently Asked Questions about Fixed Deposit vs Mutual Fund
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