Are you considering a decent investment for the future? You must have looked at options like Gold investments or equity funds in this case. What should you choose between Gold ETF, equity funds and Fixed Deposits?
The answer lies in the amount of risk that you are willing to take and how safe you want your investment to be. Gold ETFs usually provide decent returns that match inflationary rates over the long haul and are also liquid investments where you can withdraw your money by paying a penalty for premature withdrawal. However, Gold ETFs are risky investments as compared to FDs since the prices of gold can fluctuate anytime. In the current scenario, the market is pretty volatile for gold, silver and other precious metals. As a result, your investment will always be subject to market risks. Your returns may either be good or your may lose a lot of money in the short-long term on account of fluctuations in gold prices.
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The same risks are seen in case of equity funds. Equity funds are mutual funds which principally make investments in stocks. These can be passively/actively managed. These are also called stock funds. These are also categorized as per the size of the company, geography and investment style of portfolio holdings. The market capitalization determines the size of an equity fund. Equity funds often target particular sectors like commodities, real estate and healthcare. However, the biggest thing to remember here is that these funds are riskier investments than FDs since they are also subject to market risks and speculation.
Even if the returns may be higher at times, equity funds bear a lot of risk in the short-term and you may be unable to bear the sheer anxiety of earning good returns without losses. Instead, a FD offers a secure way to invest your money and have it grow at a healthy rate which is pre-fixed for a specified period. Fixed Deposits come without any risks and are not subject to any market fluctuations or other risks.
You can consider a Bajaj Finance FD for its high rates of interest and also for the added benefits including online tracking and access to information. The Fixed Deposit Interest Rates are higher than several financial institutions and you can also get a loan against your FD which is another major advantage of these investments. You can also use the online FD calculator to find out the interest that you will earn on your investment along with the amount to be earned at maturity.
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