These two types of investment instruments are better known and preferred by many investors because they have a low risk, however, mutual funds have a greater liquidity risk, while the profits from mutual funds will be greater than deposit interest. Mutual fund investments can be started with small capital, while bank deposits must have larger capital. Deposits are safer because they are guaranteed by the Deposit Insurance Agency, whereas mutual funds do not have guarantors. Deposit interest will be subject to tax at a rate of around 20%, while mutual funds are not taxable objects, deposits cannot be taken at any time, if you need emergency funds a penalty will be imposed, while you can sell mutual funds at any time without any fees or penalties.
Mutual Funds VS Deposits: Which do you prefer?
- Thread starter Suba
- Start date
I prefer mutual funds because the return is higher. You can earn some interest by putting money in a deposit account with bank. But the interest rate is quite low nowadays.
