Thursday, June 26, 2008

Capital Guaranteed - Fixed Deposits vs Investments Funds

What you think based on the following scnenario

Fixed Deposit returns - 4%
Investments returns - 8%-15%

Inflation - 6%

If my capital invested in FDs - eventually I will loose my capital by 2% due to inflation

If my capital invested in Investment Vehicles (e.g: Mutual funds), eventually my capital appreciate at least by 2% after the impact of inflation.

So now, which one is capital guaranteed: FDs or Investment(Mutual Funds)

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1 comment:

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