2024-07-22 02:47:04
New Delhi: This news was published in newspapers recently. Delhi resident Shashi Bhushan had invested Rs 1 lakh in a Mutual Fund scheme last year. His amount increased to Rs 1.70 lakh in the same year. This means a return of 70%. Shashi Bhushan did not get such a return from gambling or betting but from an equity mutual fund scheme.
Is this illegal?
Here the question arises that is this scheme which gives such a high return in just one year illegal? The answer is no. All this is legal. Actually, the stock market has always given good returns. But earlier very few people had access to it. But now the reach of mutual funds has reached every village. People are getting more educated. Now they are realizing that if they want to get better returns on their savings, then they will have to invest in the stock market.
What is the status of bank FD?
Some people have started realizing that they made a mistake by staying away from the stock market in pursuit of bank FDs. Now they are ready to invest not only their savings but also their provident fund money in the stock market. They are sure that Mutual Funds (MF) will give higher returns. They have also come to know that the returns of fixed deposits cannot compete with inflation.
wrinkle on their forehead
At this time, money is being deposited in mutual funds at a faster rate than in bank FDs. This has caused worry lines to appear on the foreheads of some people. Now look at Reserve Bank Governor Shaktikanta Das. On Friday itself, he expressed concern over the decreasing deposits in banks. Along with him, SEBI chief Madhavi Puri Buch also said that domestic savings are being invested in futures and options.
Bank FD or Mutual Fund
Investment guru Vishwadeep Parashar says that bank FD is a secure product. There is absolutely no possibility of loss in it. But it does not give adequate returns to the investor. At present, it is not even able to beat the inflation rate. At present, if you make an FD in SBI for five years, you get a return of about seven percent. On the other hand, a return of about 12 percent is easily available in mutual funds. The income tax rate on bank FD is also higher than that of mutual funds. That is why people are giving preference to mutual funds over bank FDs.
Is there lack of liquidity in mutual funds?
Parashar says that now there is no shortage of liquidity in mutual funds. If you want to redeem your funds, you can do so by 3 pm in the afternoon. The money of your funds will be in your account on the next working day. He says that just like there is in the stock market, the same liquidity is there in the schemes of mutual funds as well.