One minute read: To keep your capital amount safe, you invest for guaranteed returns through bank fixed deposits, similarly to protect your money from degrading its value, you should invest for inflation-beating returns through mutual funds.
The Saving Story
” At 13, when I visited the showroom to buy my first cycle, I got caught by the charisma of a bright red gear cycle showcased with all its glory. No, that was not the cycle my dad was about to buy for me, yet I looked at him if he can consider my new choice. He returned me his ‘out of budget’ look. However, I was determined to own that cycle within one year and started saving for it. I saved in every possible way. No more my pocket money was wasted on trivial things, it was dedicated only to focussed saving. Even on my birthday, I demanded cash over gift just to make sure my piggy bank overflows quicker. Finally, I could accumulate the money I needed and rushed to the showroom with the exictment that I will soon own that red cycle after a 1 year long wait. But all I found out after reaching the shop is that in last one year the value to my dream cycle got increased by Rs 1500.”
Time degrades the value of money. Saving is not enough. Start Investing with Mutual funds.