All investors like the word “Guarantee” and “Guaranteed Returns”. But in my view Investors are not ready to learn from the facts before their eyes while making investment decisions. My statement is when investors say I want guaranteed returns, I always inform them guaranteed returns means guaranteed loss in gains.

Let us study following table which gives facts about what happened to “Guaranteed Returns”

The learning is what apparently looks guaranteed is not actually guaranteed.

Many investors like Fixed Deposit as best instruments of savings. But most of them are not aware of the fact that deposit insurance of fixed deposit in  nationalized bank is restricted to Rs.2 Lakh only.

Due to inflation purchasing power of money is going down on year to year basis. Investors always consider Gross Rate of Interest and but should consider real rate of interest after taxation.

Investors should keep Fixed Deposit only for their short term financial requirement and for Long Term Financial Goals he should invest in Equity Oriented Mutual Fund.