Bitcoin, Mutual Funds or Fixed Deposit: Where Should you Invest


Mr. Sandeep Nandan, a resident of Hyderabad, had some savings in his bank savings account which was idle for some time. He wanted to move the fund towards a high profit-yielding investment option to make the most of his financial goals.

He had researched about many investment vehicles and shortlisted Bitcoin, Mutual funds and Fixed deposits. He was facing difficulties as he could not decide which one to opt. If you are unsure between Bitcoin, Mutual funds, and Fixed deposit as investment options, this write-up will help you decide the best one.

What are Fixed Deposits?

Coming to investment options, FD (Fixed Deposit) is one of the most lucrative or profit-yielding schemes that you could invest in. In an FD scheme, you need to put a fixed amount for a fixed time on which you gain a fixed interest rate.

Should you invest in an FD?

Yes! An FD offers you a higher interest payout for standard citizen which may go to 8.20% for senior citizens. What’s more, fixed deposits are not impacted by market conditions, unlike mutual funds which mean you can surely get ROI at the end of the tenor.

If you are relying on an FD to help you provide some good returns in the future, you are on the right track. What’s more, it also offers liquidity and a wider tenor to make your investments affordable and manageable.

What is Bitcoin?

Bitcoin is a type of digital currency in which there are encryption techniques that are used to control the generation of units of currency and confirm fund transfers. The system entitles payments to be sent between without the interference of an authority such as payment gateway or bank. It works electronically and is not printed like Euros or Dollars. They are simply produced by computers spread globally with the help of free software. It is the first example of what is being called cryptocurrencies.

Should you Invest in Bitcoin?

Now the big question is whether you should invest in Bitcoin or not! The answer is ‘No.’ You should not invest in Bitcoin because of a simple reason that Bitcoin is not at all an investment as such – just as gold, beanie babies, rare baseball cards, tulip bulbs are not investments. When you make a Bitcoin purchase – which you shouldn’t – you are doing nothing but speculating that you may get more money when you sell it which is not untrue. The ROI is not fixed or guaranteed, and you are just investing in a psychological game of taking aimless chances.

What are Mutual Funds?

In a Mutual fund, money is sourced from numerous investors and then put through in assets such as equity, liquid assets, real estate and shares.

Should you Invest in Mutual Funds?

While investing in a right mutual fund can provide you a higher ROI of up to 20%, the flipside of investing in them is that their ROI is impacted by market fluctuations and not fixed. Thus, if you are willing to invest some money in a mutual fund to make it work for you, things may go kaput.

Hence, you should be an investor with a longer tenor to gain something out of out. Thus, depending on what kind of risk appetite you are willing to avail, you should assess your condition and then only opt for it or not.

The Bottom Line

Now that you are aware of the differences between Bitcoin, mutual funds, and fixed deposits and their investment potentials, you can easily choose one! If you are looking to invest in an FD, you can easily apply for it online!