A lot of finance influencers say that fixed deposit is bad for investment. Now the think is old people used to invest in fixed deposit when the interest rate were high. But now the interest rate is less so investing in the fixed deposit doesn't make sense. So yeah the finance influencers is correct.
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But the think is most of the people doesn't invest in fixed deposit for the long term. They invest in Fixed Deposit for short term, so that they can use that money for something else. Similarly they invest in Fixed Deposit for the emergency purpose. Similarly people use the Recurring Deposit to save some money where their goal is short term.
So yeah people are becoming much aware in that terms. Now the problem is people are not able to define the short term and long term. People think that they can invest in Stock market in a year and can earn 20% and eventually lose a big part. So we all should know the finance basics on what exactly is short term and what is long term. When you have a long term goal, then keeping some part in FD makes sense as a debt fund. And other part you can invest in Mutual Fund.
Similarly if you have a short term goals then there is no point in investing in Stock Market and you can save that money in fixed deposit. And then comes the recurring deposit. We can define a goal which is 6 months away. Now every month you can save some amount to reach that goal. Now don't expect the interest much but expect that you can reach that goal. So yeah the Fixed Deposit is not for investment but it should be there in your portfolio for your own benefit.
