![]() The returns of an FD are not much and may lose value due to inflation. An FD is much more stable and can offer guaranteed returns on your investments. You can choose the risk according to your suitability. STFC's fixed deposits come with an "IND AA+/Stable" by Indian Rating and Research, indicating high safety.Ī mutual fund and SIP can offer you faster growth than an FD but is also risky as it is subjected to market fluctuations. You can always use an FD calculator to check the exact interest rate you can get for the amount you want to deposit. Which type of investment scheme should you invest in?Ĭonsidering all the benefits and risks, investing in a fixed deposit is always the safest option. Returns are guaranteed but depend on the interest rate prevailing from time to time Upon completion of the FD tenure, the entire amount invested, plus interest will get deposited into the person's account.ĭifferences between a Mutual Fund, SIP and an FD Parameters.You can avail of loans based on the amount and term of the fixed deposit.It offers flexibility to the people investing as they can select the amount and period they want to support. ![]() A fixed deposit investment is risk-free as the interest rates are independent of market fluctuations.Here are some benefits of opening a fixed deposit: Shriram Transport Finance Company (STFC) offers higher interest rates on an FD, ensuring you can achieve your future goals. You will have to pay some fees to the bank/NBFC if you want to do so. You can only break the FD during its term under certain conditions. This service is provided by banks and Non-Banking Financial Companies (NBFCs). Money can be invested and withdrawn at any time as SIPs are in open-ended funds.Ī fixed deposit, or an FD, is a type of investment that allows consumers to deposit a single sum of money for a certain period. ![]() People who invest in SIPs for more than a year can enjoy tax benefits. Tax benefits are another great benefit offered by SIPs.SIPs eliminate the need for investors to monitor interest rates because you make investments regularly.It is simple to start SIP, and a bonus feature is that you can track how the assets are performing at your convenience.Here are some benefits you will get along with a SIP account: ![]() People can invest whenever it is convenient for them. SIPs could be a stepping stone for new investors to invest in mutual funds. What is a Systematic Investment Plan (SIP)?Ī Structured Investment Plan (SIP) is an investment that allows you to make monthly deposits of small amounts of money.
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