The risk and returns in any financial instrument have a 
direct relationship.i.e. higher the risk, higher is the 
returns. 
In the case of indian economy growing at the rate of app. 9 
to 10%,where the indian corporate sectors have major 
contribution.Putting the money in such a financial products 
which invest the money in such sector, will give more 
returns.Also it seems less risky considering the global 
economic scenario.
Also the money management by expert will certainly minimise 
the risk as compared to the investment by yourself.
The returns you get in such instruments is as good as 20-
50% of your invested amount. 
so taking little more risk, you can at least double the 
returns.

if u invest in mutual fund u will recieve fluctuating 
dividend every month for e.g-(LIC MIP-monthly income plan) 
and there r many schemes r there. And the benifit is u will 
recieve dividend and also more amt. as compare to ur 
invested amt.And in bank u will get 9.5% when u invest in 
FDR. And here u can with draw ur money any time.

its totally depends upon the risk appetite of the customer. 
if a person is young they he should opt for more risk for 
more return and vise versa.

Investing in a Nationalised bank which give u 9.5% annum but
Investing in Mutual fund gives more returns because of the 
Equity and Debt Market returns are very high,  but in 
mutual funds capital is gurantee. If we take little bit 
risk high, the returns are very high.

At present most of the Banks are proving interest @8.5% 
whereas the return from Mutual Funds are increasing if you 
see the last three years trend. Nowadays the policy is if 
you want to gain more take more risk. As per my opinin the 
investor should not put all the eggs in asingle bucket. He 
should invest in Mutual Funds as well as in FDs of Banks. 
This will help him to be comfortable and could earn maximum 
income at minimum risk.

investing in mutual funds is for those people who are 
interested in some what trends of the stock market and are 
not ready to take more risk or not enough knowledgeable, 
and in reality mutual fund units are paying the returns 
quite good compared to the 9.5% returns p.a. and it's safe 
even.... mf units can be graded high with respect to risk 
and return in a capm model.

if you take more risk your return more & vice -versa.
m.f carries more risk as compared to f.d. in a nationalised 
bank .its depend upto you whether you take more risk & more 
return or vice-versa

Investing in Mutual Fund, specially the ones that invest in 
both Debt and Equity lets you diversify your investment and 
also lets you get the benefit of the high returns of the 
capital market which some cases are more than hundred 
percent.Also you get the regular returns from the investent 
in debt securities.


(Note: We should invest more in mutual funds specially now 
as more the FIIs' sell of our own mutual fund companies can 
invest and stabalise our market and make way for sustained 
growth.)

If we invest in Mutual fund, our investment will be invested
in the share market which is high risk.  Out money will also
grow depending up on the share market value.  However if we
invest in the banking sector, there is the fixed intrest it
will be secure.  So the mutual fund is the high risk high
profit.  In the national banking sector low profit low risk.

Because mutual fund are giving more return with little risk 
and and here u have the flexibility to wihdraw ur money 
whenever u want but in banks if u have made fixed deposit u 
are bound to complete he period of fixed deposit. and 
seeing the current scenerio where inflation rate is high 
i.e. 11.5% invesing in bank will eat up your money because 
inflation is even higher than he return so it is more 
profitable to invest in mutual fund and to amke your money 
grow.

Its very simple to understant logic behind investing in MF 
rather than any nationalised bank while putting money in 
bank they are holding our money for one year and giving 
interset rate of 9.5% suppose u r invement amount is Rs. 
10000 u r getting 950 Rs as intrest but we should keep in 
mind that inflation rate is 11.45% means which 11.45% on 
10000Rs i.e. 1145 on u r investment amount its shows that 
actaully u r in loss of 1145-950= 195 Rs i.e. u r not 
earing anything while bank is using u r money for one year 
and they r making profit out of it. 
if we consider MF Higher risk higher return so MF giving 
opportunity of 

Proffessional expertise for fund managemnt 
Risk diveresification 
portfolio managment

see there are many plans in MF(mutual fund) like-1)MIP
(monthly income plan) in this plan company has given some 
amount monthly as a interest.2)locking scheme plan in this 
plan company has given almost double amount whatever amount 
u invest, within 3yrs...

Becuase this save my money and give me a good interest.

see this is totally depends upon on the investor how much
risk he can bear .if investor is low appetite or in sceure
nature then obviously he will go with fds &all that.

It's Microfinance is best(This is provide Security Granteed 
From Members,Rate Interest :12.5%