Investor Education

Are Mutual Funds (MFs) Competing Against Bank Deposits

Are Mutual Funds (MFs) Competing Against Bank Deposits?

Mutual Funds (MFs) and bank deposits are not in direct competition, as they serve distinct financial purposes. Bank deposits, including savings accounts and fixed deposits, offer low-risk, secure options with modest interest rates, primarily focused on capital preservation. In contrast, mutual funds are investment vehicles that pool money from multiple investors to create diversified portfolios …

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