Investors Opting for MFs and Stock Market Over Fixed Deposits

Investors Breaking Fixed Deposits to Invest in Mutual Funds and Stock Markets

Investors in India are abandoning traditional fixed deposits and turning to mutual funds and stock markets as belief in the country’s growth story intensifies. Bhuvanaa Shreeram, Co-Founder and Head of Financial Planning at House of Alpha Investment Advisers, Mumbai, explained that this trend is driven by the lure of higher returns despite increased risk. The popularity of systematic investment plans (SIPs) offered by mutual funds has also soared, particularly among young and middle-aged investors. SIPs provide a disciplined approach to investing in risky asset classes like equities, are less affected by market volatility, and benefit from rupee cost averaging.