The Investment Shift: Why Mutual Funds Are Beating Bank Deposits

In spite of market fluctuations, mutual funds have risen at a faster rate than bank deposits. In the last ten years, mutual funds have grown at a compound annual growth rate (CAGR) of 20.5%, compared to the 10.3% growth in bank deposits. The trend is based on the strong performance of the equity market and the use of systematic investment plans (SIPs). As families increasingly look for higher returns, they are moving savings from old-fashioned bank deposits to mutual funds and other instruments. This trend reflects the expanding popularity of market-linked products compared to fixed deposits.

 

Source: Business Standard