Flexible and Safe Investment Plan
Mutual funds are highly specialized investment schemes, that is, each of them invests in a certain type of market cap or sector. For instance, equity mutual funds invest in stocks or shares or equity and equity-related instruments. In the event that a stock does not fetch the desired results, it will affect the mutual fund and investor directly. However, the same cannot be said for ULIPs because the investment funds are made with a combination of both equity and debt in varying proportions and a certain objective in mind. Being a flexible investment, fund managers of insurance companies can choose to invest in an extensive variety of funds that show the scope of generating maximum returns. This feature also makes ULIPs a safer investment option.
Fixed deposits (FDs) are a low risk investment that can help grow money over time. Investors can choose from bank FDs or company FDs. Certain FDs also offer income tax benefits.
While investing in FDs may seem simple, investors must consider a few points while selecting the FD most suited to their needs: