What's more profitable: deposits or mutual funds?

To date, one of the most understandable to the public of financial instruments - a deposit. Funds also are the easiest way to direct investment in the stock market. If we examine bank deposits, on which the investor is paid a fixed percentage, we can distinguish a few moments. Distinctive features of bank deposits are saving money with a small guaranteed income and a low level of investment risk. If a depositor wants to withdraw money from the account ahead of time, he usually loses almost all interest on the deposit. The advantages of the same bank deposits is a well-defined interest rate and a deposit protection by the state in an amount which is established at the legislative level. To date, bank deposit up to 700 thousand rubles is fully insured. In the case of revocation of a license from a financial institution funds held on deposit as well as on the current account of a citizen, will not exceed a specified amount is fully refunded, and the deposits in different credit institutions are not cumulative. In respect of return of the instrument observed the following trends: interest rates on short-term deposits are gradually declining, while interest on long-term deposits grow slightly. Accordingly, the main drawback of deposits that at a high level of inflation rate of interest on deposits did not cover the depreciation of money. With regard to mutual funds, then this way of investing money is more complicated in execution. Using this tool requires a higher level of investment literacy, as well as readiness to accept a higher level of risk. SIF allows you to make a profit, going ahead of inflation, but it is also a risky tool, which can lead to partial loss of funds. Level of income from such investments are usually higher than the deposit, but there is no guarantee of complete safety of funds. Here it is important to any financial instruments invested money manager Pif example, if you plan to keep saving for retirement, then the best for mutual funds, working with bonds. Investments in bonds are less profitable but more reliable. If the goal is to obtain greater profits in the short term, we can pay attention to industry funds, which allocate funds in the shares of enterprises. Possible and all possible combinations of different instruments. Unlike banks, mutual fund allows a fast return on investment without any loss of income. Shareholders may redeem shares owned by him every day and get all the accumulated income in the intervening period, of course, if the mutual fund showed a positive result. To decide where to invest the funds necessary to define objectives pursued, the planned timing and level of risk you're willing to accept. Author: Stanislav Kochetkov