anuragmukherjee28
Moderator
this table helps you to understand the difference between FD and Mutual Funds
Additionally, FD rates have increased recently, so consider FDs as an investment option and don't overlook them.
| Feature | FD | Mutual Fund |
| Risk | zero risk ( upto 5 lakhs deposit , protected by RBI) | Medium to high |
| Return | Fixed | Variable |
| Liquidity | can liquidate,but it might have to pay some penalty or less interest | redem before 1 year would attract you exit load and taxes and other penalties (varies) |
| Investment duration | Short-term /long-term | long-term (greater than 1 year) |
| Charges | no charges as such | A lot of charges ( exit load, expense ratio,..) |
| Professional management | Nothing to manage | Yes |
| Diversification | No diversification / not applicable | Yes |
| Tax efficiency | Interest income is taxable | Capital gains are taxable |
Additionally, FD rates have increased recently, so consider FDs as an investment option and don't overlook them.
