With increased levels of awareness, digital adoption and product innovation over the years, investors—especially millennials—have started avoiding bank fixed deposits. In terms of overall asset allocation, debt mutual funds might work better for them as they don’t require regular income unlike senior citizens or retirees," said Sadagopan. According to experts, in terms of short-term goals and emergencies, there is no alternative to bank FDs. While FDs provide risk-free returns, experts also feel that low-yield bank FDs work only for conservative investors. “If millennials are looking for higher fixed returns, they can look at government schemes such as Post Office Monthly Income Scheme.

Source: Mint July 13, 2021 18:44 UTC