2. What are they
• Traditional investments include gold and fixed deposit
whereas New Era Investment comprises of various
forms of mutual fund. Choosing any one requires a lot
of consideration by the investor. Let’s take a look at a
few factors which influence this decision.
3. Risk Factor
• Mutual Funds are much more prone to market
volatility and risk associated with the same in
comparison to Fixed Deposits which offer guaranteed
return. Risk factor of debt instruments are no doubt
less in comparison to equity ones. But as they say, it’s a
no risk, no return scenario!
4. Return
• Rate of return on Fixed Deposit do not alter during its
tenure. However the mutual fund return has a direct
forbearing of the market conditions and its return
varies proportionately.
5. Time Span & Liquidity Analysis
• Fixed Deposit holders get penalized on an event of
premature withdrawal of their FD. Mutual Funds do
not have any lock-in period except ELSS.
6. Tax Status
• Mutual funds can surely be termed as much more tax
friendly with slab rates in comparison to Fixed
Deposits which have a singular tax structure. Long
term Equity Mutual Funds are for example not taxable
at all.
7. Conclusion
• It is difficult to take a pick in between any one.
Investors have to analyze it themselves depending
upon their risk bearing capacity. However when the
market condition is good and there exists possible
chances of growth of the economy then it is always
advisable to go for Mutual Funds or Modern Era
Investments as they ensure higher returns.
