Rates rising, but why you needn’t switch wholesale from MFs to FDs

As interest rates rise, where should funds be parked ideally? Three years ago, money deposited in banks gave negative returns due to low interest rates and high inflation. Now, with stock markets volatile, mutual funds sluggish, and interest rates rising, savers and pensioners have started looking at fixed deposits (FDs) as an investment avenue. Experts say FDs can be part of the debt portion of asset allocation — but investors should not ignore equities and stock markets, as they will lead to wealth creation in the long term.

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