The Economic Times

The biggest psychological comfort zone: CA on why your FD may be quietly hurting your wealth

CA Nitin Kaushik explains why Fixed Deposits, despite offering guaranteed returns, may not always build long-term wealth. He compares Rs 1.2 lakh invested in a 10-year FD at 7% with the same amount invested in a Nifty 50 Index Fund, estimating around Rs 2.4 lakh versus Rs 3.72 lakh. Kaushik says FDs suit capital preservation, emergencies and short-term goals, while long-term wealth requires considering growth and purchasing power.