Many people save money in Fixed Deposits (FDs) because they are safe and guaranteed. Others invest in Mutual Funds for higher returns. But which is better for you? Let’s compare.

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1. What is a Fixed Deposit (FD)?

• Guaranteed interest (5–7% in India today).
• Very safe, low risk.
• Money locked for a certain period.

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2. What is a Mutual Fund?

• Money pooled into stocks/bonds.
• Returns can be higher (10–15%) but also risky.
• Flexible withdrawal (depending on fund type).

Feature	FD 🏦	Mutual Fund 📈
Risk	✅ Safe	⚠️ Market Risk
Returns	💰 5–7%	💹 8–15%
Lock-in	⏳ Fixed	🔓 Flexible
Tax Benefit	📜 Limited	📜 ELSS (80C)