Hi , I am anand vardhan i would like to get report om comparative study of mutual fund return and bank deposits .if u have the project please send me as soon as possible on my email id Royalav1990[at]gmail.com ,I am living at gurgaon ,i last studied in ibs gurgaon ,I need help on this topic.
Anand vardhan
trainee financial advisor
Posts: 14,118
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Although bank deposits are the preferred instrument to save for short-term goals, debt mutual funds may be a better alternative. They are more efficient in taxes if they are maintained for more than three years and can even generate higher returns for investors. You could save to buy a car, go on an alien holiday or even save money for your child's college admission. Meet Waman Prabhu, based in Bengaluru, who saves to buy a car in about 2-3 years. A short-term debt fund will give you greater flexibility and better fiscal efficiency than bank deposits.
Bank deposits have been one of the most popular investment options when it comes to earning a regular income. In addition to the security factor, guaranteed income is one of the big advantages why investors opt for bank deposits.
But what about the income tax factor? In the case of bank deposits, interest income is simply added to investors' income and taxed according to their respective tax forms.
Apart from falling interest rates, the fiscal factor is also one of the reasons why financial planners suggest systematic withdrawal plans (SWPs) in mutual funds to be a better option for investors - from one Lump sum
Debt funds also offer the advantage of liquidity should investors wish to withdraw. Prospects for debt funds also remain positive. Manoj Nagpal, chief executive of Outlook Asia Capital, expects interest rates to fall even further by 100-150 basis points by 2018, further boosting debt markets. Debt markets recover when interest rates go down.
"Globally debt markets have been in a structural reduction of interest rates due to moderate growth rates and lower inflation. This is a part of the reason for the lower interest rates in India, in addition to the Fundamental strengthening of the Indian economy, "he added.
