WHY ONE SHOULD INVEST IN MUTUAL FUNDS
It is a known fact that Indians have vested their trust in Fixed Deposits as it is considered safe as capital invested doesn’t fluctuate and the maturity value is predetermined due to fixed rate of interest during the time of investment. These fixed deposit provides rate of interest just over the prevailing rate of inflation. More-over if the interest earned from these fixed deposit is withdrawn for consumption, the capital invested will gradually lose its purchasing power, although the principal amount will remain intact. The other investment options which Indians also rely the most is investment in Public Provident Fund (‘PPF’) and Post Office Deposits. Undoubtedly these investments are safe but it has failed to beat inflation and provide the real returns. The specified lock-in-period of fixed deposits, PPF and Post Office Deposits is also a matter of concern during liquidity crises. The below table depicts the rate of interest over period of years from Fixed Return Investment option...