Save Money: Time Deposite or Fund?

PENDING ORDER: XAU/USD, XAG/USD, USOIL

The three-year and five-year interest rates of time deposits are very low, which cannot keep up with the rise in prices, let alone the rise in housing prices. Monetary funds have little risk, and yields that exceed regular rates. Other funds have certain risks. If there is a method and energy to choose, you can still choose a suitable fund. The specific situation depends on the investor’s own needs.

  • If you don’t know much about funds, it is recommended to deposit them directly. Because buying funds requires certain professional knowledge, many financial managers will fool you, so it is recommended not to buy fund products for complete beginners..
  • If you have a certain understanding of funds, don’t listen to the flickering of bank wealth management managers, and choose funds by yourself, it must be that funds are more cost-effective than regular deposits.

Returns

Under normal circumstances, the current one-year time deposit benchmark interest rate of banks is about 1.5%, which means that the current market interest rate is almost negative. For investors, in this case, if inflation is encountered, with the devaluation of the currency, it is no longer possible to maintain the value of the bank deposit period.

However, if you invest in funds, the returns of currency funds with lower returns are all around 4%, which has obvious advantages compared with regular banks.

Risk

In terms of risk, bank deposits have the lowest risk among investment products. Therefore, it is suggested that investors can reduce risks through several investment channels in order to achieve the goal of sound investment. Investors are advised to save and invest in funds in a certain proportion.

If the household income is low, the savings and investment fund can be carried out in a ratio of 5:4; if the family income is high, the savings and investment fund can be carried out in a 4:5 ratio.
In addition, there are several fund types to choose from to invest in to enhance your returns. To buy a fund, you must first choose a good fund company, then choose the investment direction of the fund, determine the level of risk you can bear, and then choose a fund that suits you.

In fact, each has its pros and cons, the main one being your own needs.

If you are a risk averse, that is to say a conservative person who is unwilling to take a little risk, then a fixed deposit is the best choice.

close

We don’t spam! Read our privacy policy for more info.

Related Articles

Justin Sun Is Said to Have Discussed Stake Sale in Huobi Global

03/31/2023

Justin Sun Is Said to Have Discussed Stake Sale in Huobi Global...

India’s Oyo Makes a Second Try for IPO After Valuation Slumps

03/31/2023

India’s Oyo Makes a Second Try for IPO After Valuation Slumps In...

IMF Board Approves $5.4 Billion Argentina Loan Disbursement

03/31/2023

IMF Board Approves $5.4 Billion Argentina Loan Disbursement IMF Board Approves $5.4...

Maduro Foes Can’t Get Money for Lawyers After Guaidó’s Ouster

03/31/2023

Maduro Foes Can’t Get Money for Lawyers After Guaidó’s Ouster In this...

US Power Plant Firm Goes Bankrupt After Winter Storm Penalties

03/31/2023

US Power Plant Firm Goes Bankrupt After Winter Storm Penalties (Bloomberg) —...

Ford Takes Stake in Indonesia Nickel Project to Ensure Supplies

03/30/2023

Ford Takes Stake in Indonesia Nickel Project to Ensure Supplies In this...