Srijith has been a regular investor in government savings schemes. He has a PPF account, in which he invests every year. He also parks funds in fixed deposits whenever he has surplus money. He makes regular savings in recurring deposits, and also invests in RBI bonds and tax-saving infra bonds whenever a new issue is announced. He has always held the view that equity mutual funds are very risky, but has heard a lot about their wealth creation ability at investor meets and forums.
Hence, he would like to know more about how they differ from the traditional investments that he is familiar with.Srijith’s comfort with government savings schemes and fixed deposits comes from the pre-specified rate of return and guaranteed safety of principal.
