When it comes to selecting the ri ght saving plans , risk-averse investors often debate between fixed deposits (FDs) and mutual funds. Both options serve different financial objectives, offering varied returns, risk levels, and liquidity. Understanding their differences can help inve stors make informed choices based on their financial goals. Understanding Fixed Deposits and Mutual Funds Fixed deposits are offered by banks and financial institutions, where investors deposit a sum for a fixed tenure at a predetermined interest rate. The principal and interest are guaranteed, making FDs a secure saving plans . Mutual funds, on the other hand, pool money from multiple investors and invest in stocks, bonds, or a mix of assets. While they offer the potential for higher returns, they are subject to market fluctuations, making them riskier than FDs. Comparison Between Fixed Deposits and Mutual Funds Risk Factor FDs are low-risk investments, providing guaranteed returns without market vo...
Saving money is crucial for salaried professionals to achieve financial security and long-term wealth creation. Whether the goal is to build an emergency fund, plan for a major expense, or secure retirement, selecting the right saving plan is essential. Here are some of the best saving plans in India that offer stability, returns, and tax benefits. Top Saving Plans for Salaried Professionals Public Provident Fund (PPF) A government-backed scheme with a 15-year lock-in period. Offers tax-free interest and benefits under Section 80C. Provides compounded returns, making it a great long-term wealth-building tool. Employee Provident Fund (EPF) & Voluntary Provident Fund (VPF) EPF is a mandatory retirement savings scheme where both employer and employee contribute. VPF allows employees to contribute more voluntarily for higher savings. Offers tax benefits and a stable interest rate, currently around 8.25%. National Pension System (NPS) A retirement-focused investment plan with tax...