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Safety from market volatility is one of the key reasons for investors to invest in fixed deposit (FD) over a fixed income fund, according to a recent survey by investing platform Kuvera.
Almost half of the respondents (over 44%) said they invested in an FD when they needed money within three years with total safety. Another 23% said they invested in an FD to park emergency funds to beat inflation.
Kuvera surveyed around 1.6 million of its investors to understand the reasons behind the popularity of FDs among Indians.
“FDs are quite popular among Indians and we set out to understand why it was so. Unsurprisingly, the simplicity of FDs and the safety it assures attract investors to FDs. It’s an effective method of protecting emergency funds from market volatility and a large segment of our investors agree,” said Gaurav Rastogi, co-founder of Kuvera.
Kuvera’s survey found that many investors preferred an FD for its simplicity and familiarity and they invested in an FD for safety from market volatility.
