Financial advisers say it would be wrong to avoid fixed deposits as an old-school instrument
With markets getting efficient over time, interest rates falling to record lows and investors turning more tech-savvy and open to experimentation, bank fixed deposits have been losing appeal over the past few years. According to a Mint report, bank deposits slumped nearly 10% between 23 April and 21 May this year. At the same time, equity mutual funds saw net inflows of about ₹9,230 crore in May. Although the inflow into equity schemes halved in June, the continued investment suggests that investors are looking at avenues for higher returns despite increased risks.