In today’s run -of -the -mill life, we are all engaged in saving. You will find extensive savings options in the market. But due to lack of information, we lose the opportunity to earn more money. Since the Corona period, people now want to keep big savings with them. When, where and what kind of problem comes, nothing can be said. So let us tell you about the two ways of savings which are becoming the most popular among the youth today.
We are talking about mutual funds i.e. SIP and FD. Both platforms provide the best returns in their field. But how much you invest, it also affects your returns. If we talk about the saving account of the bank, then the interest rate on it is negligible. Therefore, people’s attention leads to SIP and FD.
First of all, let’s talk about Mutual Fund SIP. See, you can invest directly in the stock market whenever you want. You can buy and sell shares of any listed company. But in this process you are more likely to get hurt.
Suppose you buy 20 shares of Company X at Rs 10 per share. But after a few days, due to the policy of the company, this price was reduced to 5 rupees. So when you go to sell, you will suffer a loss of 100 rupees directly. At the same time, mutual funds SIPs are slightly low risk. Here you give your money to a market expert through mutual funds and they invest your money in many companies instead of just one company. Due to this, if the company X has losses, it is balanced by the benefits of another company Y.
Talking about FD, it is the safest medium of savings. Here you are given interest at a fixed rate. It has no effect on market conditions. However, these rates may vary bank-by-banks. That is why it is said that if you want to be free from any kind of stress in life, then choose FD option.
As far as elections are concerned, both are the best in their respective fields. However, SIP includes market risk. Therefore, there is a danger of loss here. On the other hand, FD is risk -free, but returns here are low. There is a saying that the higher the risk, the greater the profit. Therefore, choose either one of your requirement and investment amount.
