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Sagar Anantwar

ย โ€ขย 

SimpliFinย โ€ขย 5m

Do you invest all your savings into Fixed Deposits? Big mistake, read more Fixed Deposits (FDs) have been a staple of Indian households for decades, but how do they fit into a modern investment portfolio? Letโ€™s break it down: ๐Ÿ”น Not a Growth Asset FDs are not for high growth. They provide a fixed return but rarely beat inflation. FDs are designed to preserve wealth, not grow it aggressively. ๐Ÿ”น Beating Inflation? Hardly Even with some FDs offering 9.1% p.a., post-tax returns fall to 6-7%, often below inflation. This means your real wealth might not increase over time. ๐Ÿ”น Liquidity and Safety FDs are safe and provide better returns than savings accounts. Theyโ€™re perfect for emergency funds or short-term goals where stability and access are key. ๐Ÿ”น Every Investor Needs Stability FDs offer peace of mind during market volatility. While they wonโ€™t drive growth, they are essential for emergencies and financial stability. So, definitely invest in FDs, but keep in mind their purpose.

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