Fixed Deposit (FD)
Safe, stable, guaranteed returns
Pros
- Very low risk (your money is safe)
- Guaranteed interest (5%–8.5% depending on bank)
- Easy to open/close
- Good for short-term or emergency funds
- Covered by ₹5 lakh DICGC insurance per bank
Cons
- Returns are low compared to inflation
- Interest is taxable
- No wealth creation
Best for:
- Senior citizens
- Risk-free savings
- Emergency funds
- People who want stability, not growth
Share Market (Stocks / Mutual Funds)
High risk, high return, long-term wealth creation
Pros
- High returns (12%–18% average for equity in long term)
- Beats inflation
- Builds long-term wealth
- Dividends provide extra income
- Available through SIP or direct investing
Cons
- Market goes up & down
- Risk of loss (especially short term)
- Requires knowledge or mutual fund route
Best for:
- Long-term investment (5–10+ years)
- People who want to grow wealth
- Young investors
- SIP investors
