........ 3 years ago
Knowledge Junction:Answered in 13 mins
Investments are measured on various parameters like liquidity, risk, returns, etc. Every investment like MF, FD, shares, bonds, real-estate is different on these parameters. Each investment type is tailored to meet specific needs on these parameters.
MFs as usually referred by people are equity MFs - They pool money from people and appoint professional managers to invest in shares. It is risky for short-term but provides high-returns in long-term.
FD is a fixed-return investment offered by banks and companies also. It is safer than shares or equity MFs but has tax-implications and low returns.
Shares as we know is a part ownership in a business/company. It is more riskier than Equity MFs. It is risky in short-term but provides high-returns in long-term.
Its always advisable to look at investing as a whole and determine your big money goals in life like -- Higher education, Marriage, Buying Home, etc and mix-n-match to arrive at a personalized and customized solution comprising of various different investments. Most people ignore Retirement Planning until its too late. Consider consulting a professional Financial Planner to help make a complete financial plan and explore the best mix-n-match of investments.