Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

How is investment in mutual fund is different from the bank deposit?

Tags: money, mutual fund, bank deposit
Asked by siddharth Paliwal, 17 Jan '12 10:43 am
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

1.

Bank deposits will always get you back your initial investment with some fixed interest whereas investment in mutual funds will give you returns as per their NAV, which could either more or less than your original amount invested.
Answered by Dharmarajan, 17 Jan '12 10:49 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

When you deposit money with the bank, the bank promises to pay you the interest for the period you specificed .On the date of maturity the bank is supposed to return the principle amount and interest to you, mutual funds offers better returns as compared to the fixed deposits.So it is advisable to invest in the well known funds so that you will not loose from your investment.All of the necessary information is available in the website Reliance mutual fund,ICICI,HDFC.
Answered by mohit jagannath, 17 Jan '12 10:44 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

As twenty years is really a long term - it is better to place all your bet in Equity based rather than Bond/Liquid - may be on seventeenth or eighteen..more

Answered by Mickey