{"id":22241,"date":"2021-10-01T06:00:07","date_gmt":"2021-10-01T06:00:07","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=22241"},"modified":"2021-12-02T08:14:19","modified_gmt":"2021-12-02T08:14:19","slug":"mutual-funds-vs-fixed-deposit-which-one-should-you-choose","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/moneyfy\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/","title":{"rendered":"Mutual Funds VS Fixed Deposit : Which One Should You Choose?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Here\u2019s a fact! Investing is key to building wealth. From mutual fund (MF) schemes to fixed deposits (FDs), each one allows you to grow your savings but comes with its own set of pros and cons.<\/p>\n\n\n\n<p>In this article, we look at mutual funds vs fixed deposits and which should you invest in.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How do MFs work?<\/strong><\/h2>\n\n\n\n<p>MF schemes pool capital from multiple investors. This corpus is invested in various financial securities, including bonds, stocks, debt securities, money market instruments, and other assets \u2013 depending on your MF\u2019s mandate.<\/p>\n\n\n\n<p>This investment vehicle is well suited for you if you don\u2019t have the time to regularly oversee your investments. Here, a qualified fund manager takes care of your investment decisions, allocates the assets under management (AUM), and decides the entry\/exit time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Benefits of investing in MF schemes<\/strong><\/h2>\n\n\n\n<p>A significant advantage of investing in MF schemes is professional management. Since your fund manager picks the best securities for making investments, you get to build a portfolio packed with high-growth stocks, bonds, government securities, etc.<\/p>\n\n\n\n<p>Besides that, you can start your investment through a systematic investment plan (SIP) with small initial investments as low as Rs. 100. You also enjoy liquidity with <a href=\"https:\/\/www.tatacapital.com\/moneyfy\/\">mutual funds<\/a> as you can conveniently exit a scheme and redeem your unit holdings.<\/p>\n\n\n\n<p>With MF schemes, you can easily park funds in a broad spectrum of asset classes. Whether you are risk-averse or an aggressive investor, you\u2019ll find a product suited to your time horizon, investment objective, risk profile, income, etc.<\/p>\n\n\n\n<p style=\"color:#FF0000\"><strong>Additional Read: <\/strong><a href=\"https:\/\/www.tatacapital.com\/blog\/investments\/mutual-funds-vs-stocks-which-is-better\/\">Mutual funds vs Stocks: Which is Better?<\/a><strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How do FDs work?<\/strong><\/h2>\n\n\n\n<p>You can lock away a lump sum amount in a fixed deposit for a predetermined tenure. Here, the amount you deposit earns a fixed interest. Besides, since the interest is fixed, you know exactly how much your money will grow within the period and enjoy the highest assurance of earning decent, consistent returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>#1 Types of FDs<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Cumulative FD<\/li><li>Non-cumulative FD<\/li><\/ul>\n\n\n\n<p>When your savings earn interest in cumulative deposits, the interest income is added to the principal sum deposited and is reinvested. This means you enjoy accrual interest growth. Now when your FD matures, you collect your invested principal amount and the earned interest.<\/p>\n\n\n\n<p>Whereas, when you invest in non-cumulative deposits, the earned interest is disbursed at periodic intervals- quarterly, annually, or monthly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>#2 Benefits of investing in an FD<\/strong><\/h3>\n\n\n\n<p>If you are like most risk-averse investors, you want to collect high returns on your investments without the potential risk of losing your hard-earned money to market fluctuations. An FD provides you just that! As one of the safest investment avenues, you can easily park excess funds and multiply your savings steadily with fixed deposits.<\/p>\n\n\n\n<p>But that\u2019s not it! You\u2019ll accrue assured returns on your investment regardless of how the market behaves.<\/p>\n\n\n\n<p style=\"color:#FF0000\"><strong>Additional Read: <\/strong><a href=\"https:\/\/www.tatacapital.com\/blog\/wealth-management\/mutual-fund-fact-sheet-key-information-it-holds\/\">Mutual Fund Fact Sheet: Key Information It Holds<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The bottom line<\/strong><\/h3>\n\n\n\n<p>If you are wondering which is better, mutual fund or fixed deposit, there is no correct answer. When it comes to investing, always choose an investment vehicle depending on your financial fitness, goals, and risk appetite. <\/p>\n\n\n\n<p>With Tata Capital\u2019s <a href=\"https:\/\/www.tatacapital.com\/moneyfy\/\">Moneyfy<\/a> app, multiply your savings with FDs or MF schemes. Select an investment avenue matching your objectives and start reaping benefits today!<\/p>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.tatacapital.moneyfy&amp;hl=en\">Download Moneyfy App<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a fact! Investing is key to building wealth. From mutual fund (MF) schemes to fixed deposits (FDs), <\/p>\n<p><a href=\"https:\/\/www.tatacapital.com\/blog\/investments\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":22275,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[63],"tags":[],"class_list":["post-22241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fixed-deposits"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mutual Funds VS Fixed Deposit: Which one should you choose? - Tata Capital Moneyfy<\/title>\n<meta name=\"description\" content=\"Investing is key to building wealth be it mutual funds (MF) schemes or fixed deposits (FDs). Read our guide and choose between mutual funds vs fixed deposit.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Funds VS Fixed Deposit: Which one should you choose? - Tata Capital Moneyfy\" \/>\n<meta property=\"og:description\" content=\"Investing is key to building wealth be it mutual funds (MF) schemes or fixed deposits (FDs). Read our guide and choose between mutual funds vs fixed deposit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/\" \/>\n<meta property=\"og:site_name\" content=\"Moneyfy Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-01T06:00:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-02T08:14:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2021\/10\/08-mutual-funds-vs-fixed-deposit.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/\",\"url\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/\",\"name\":\"Mutual Funds VS Fixed Deposit: Which one should you choose? - Tata Capital Moneyfy\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2021-10-01T06:00:07+00:00\",\"dateModified\":\"2021-12-02T08:14:19+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/0485591fd960aaa01211ff62d7d5faab\"},\"description\":\"Investing is key to building wealth be it mutual funds (MF) schemes or fixed deposits (FDs). Read our guide and choose between mutual funds vs fixed deposit.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/tata-blog.osian.dev\/moneyfy\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Funds VS Fixed Deposit : Which One Should You Choose?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"Moneyfy Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/0485591fd960aaa01211ff62d7d5faab\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/tata-blog.osian.dev\/moneyfy\"],\"url\":\"https:\/\/tata-blog.osian.dev\/moneyfy\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Funds VS Fixed Deposit: Which one should you choose? - Tata Capital Moneyfy","description":"Investing is key to building wealth be it mutual funds (MF) schemes or fixed deposits (FDs). Read our guide and choose between mutual funds vs fixed deposit.","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Mutual Funds VS Fixed Deposit: Which one should you choose? - Tata Capital Moneyfy","og_description":"Investing is key to building wealth be it mutual funds (MF) schemes or fixed deposits (FDs). Read our guide and choose between mutual funds vs fixed deposit.","og_url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/","og_site_name":"Moneyfy Blog","article_published_time":"2021-10-01T06:00:07+00:00","article_modified_time":"2021-12-02T08:14:19+00:00","og_image":[{"width":770,"height":400,"url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/wp-content\/uploads\/2021\/10\/08-mutual-funds-vs-fixed-deposit.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/","url":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/","name":"Mutual Funds VS Fixed Deposit: Which one should you choose? - Tata Capital Moneyfy","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2021-10-01T06:00:07+00:00","dateModified":"2021-12-02T08:14:19+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/0485591fd960aaa01211ff62d7d5faab"},"description":"Investing is key to building wealth be it mutual funds (MF) schemes or fixed deposits (FDs). Read our guide and choose between mutual funds vs fixed deposit.","breadcrumb":{"@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/fixed-deposits\/mutual-funds-vs-fixed-deposit-which-one-should-you-choose\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/tata-blog.osian.dev\/moneyfy\/"},{"@type":"ListItem","position":2,"name":"Mutual Funds VS Fixed Deposit : Which One Should You Choose?"}]},{"@type":"WebSite","@id":"https:\/\/www.tatacapital.com\/blog\/#website","url":"https:\/\/www.tatacapital.com\/blog\/","name":"Moneyfy Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/0485591fd960aaa01211ff62d7d5faab","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","caption":"admin"},"sameAs":["https:\/\/tata-blog.osian.dev\/moneyfy"],"url":"https:\/\/tata-blog.osian.dev\/moneyfy\/author\/admin\/"}]}},"featured_image_url":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-content\/uploads\/2021\/10\/08-mutual-funds-vs-fixed-deposit.jpg","_links":{"self":[{"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/posts\/22241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/comments?post=22241"}],"version-history":[{"count":3,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/posts\/22241\/revisions"}],"predecessor-version":[{"id":22350,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/posts\/22241\/revisions\/22350"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/media\/22275"}],"wp:attachment":[{"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/media?parent=22241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/categories?post=22241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/moneyfy\/wp-json\/wp\/v2\/tags?post=22241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}