So How Well Would You Have Done With FDs Only?

Every time the stock markets tank or or equity returns look less than appealing,there is a tendency to want to return to the stable and predictable FDs. Why lose capital on the stock market or risk one’s money for lower rates than FDs?Why not just invest in FD’s and avoid the hassles of investing in the stock market?

In fact,what would have happened to you if you invested exclusively in FDs over the last thirty years?Ever wondered about that?If so,this link will give you your answer:Long Term Returns From FDs

Of course by locking in the higher rates ,when they appear, for as long as possible, and taking care to avoid FDs when they trail inflation rates for prolonged periods, you will be able to do a little better.Also these rates are those of the nationalized banks.You could earn a bit more by opting for smaller private banks and scheduled co-operative banks.You would still enjoy the same deposit insurance.

However the ravages of inflation should give you a pause before you decide on an all FD approach. Equity at worse is a necessary evil.