When it comes to investment with safe and good returns, the first two names that come to the minds of investors are fixed deposits (FD) and gold. Both these investment options are very popular in India because investors are safe and returns.
But when it comes to choosing either of the two, then often the questions arise in the mind that where to invest the money of money? Let us understand what can be better for you in both these options of investment between changing economic conditions, inflation and instability in interest rates.
Investment in fd
FD means fixed deposit is such an investment in which you deposit your money in a bank or financial institution for a fixed time. On this you get a certain interest rate, which is fixed over time. There is no market risk in this. The principal and interest is found together when the time is completed in FD. Generally, senior citizens get more interest.
Investment in gold
Investing in gold has become a tradition in India, which has been going on since a long time ago. Often people buy gold or gold jewelery on festivals and auspicious occasions and it is considered auspicious. But now new and digital methods of investment in gold have also come. These include options like Gold ETF (Exchange Traded Fund), Sovereign Gold Bond (SGB), Digital Gold and Gold Mutual Fund. Investing in gold is also popular because it also maintains its price in market volatility and gives good returns in the long term.
Gold or FD will get more returns?
FD gives fixed returns, which is fixed at the time of investment. Return is fixed in this. At the same time, investment in gold is likely to get better returns in a long time. The risk in FD is almost zero and your money is safe. While gold is associated with the ups and downs of the market, it is considered safe in the long term.
What is better option for investment?
Both FD and Sona are good options, but depending on your age, goal, risk ability and need, where to invest will be beneficial for you. If you want a stable and safe return, FD is better. On the other hand, if you want to prevent more returns and inflation in the long term, then gold can be a great option.