What Happens to ₹10,000 When You Invest in FD, Mutual
Funds, PMS, or AIF?
When it comes to growing wealth, choosing the right
investment vehicle is crucial. But with so many options—FDs, Mutual Funds, PMS,
and AIFs—it's easy to get overwhelmed. Let’s break it down and see what
typically happens to a ₹10,000 investment in each of these avenues.
Fixed Deposit (FD): Safe but Limited Growth
What It Is:
A bank-issued deposit product with a fixed interest rate and tenure.
What Happens to ₹10,000:
Assuming an average interest rate of 6.5% p.a., after 1 year:
Maturity Value: ₹10,650
Risk Level: Very Low
Liquidity: Medium (penalty for premature withdrawal)
FDs are ideal for capital protection, but not great for
beating inflation.
Mutual Funds: Market-Linked and Diversified
What It Is:
A pooled investment managed by professionals that invests in stocks, bonds, or
a mix.
What Happens to ₹10,000:
Assuming an average annual return of 10–12%, after 1 year:
Value Range: ₹11,000–₹11,200
Risk Level: Moderate
Liquidity: High (especially for open-ended funds)
Mutual Funds offer a balance of growth and risk if chosen
wisely.
PMS (Portfolio Management Services): Personalized and
Active
What It Is:
A service where professional managers invest on your behalf, usually in
equities or structured products.
What Happens to ₹10,000:
Here’s the catch—minimum investments usually start from ₹50L, so
technically ₹10,000 wouldn’t qualify. But hypothetically, with 12–15% returns
(after fees):
Value Range:
₹11,200–₹11,500
Risk Level: High
Liquidity: Medium (lock-in and exit load may apply)
PMS is for high-net-worth investors seeking personalized,
aggressive strategies.
AIF (Alternative Investment Fund): Niche and High
Potential
What It Is:
Privately pooled investment vehicles like venture capital, private equity, or
hedge funds.
What Happens to ₹10,000:
Again, minimum investment is ₹1 crore, so ₹10,000 can’t be deployed
here—but for understanding:
Potential Returns: 15–25%+ (high variability)
Risk Level: Very High
Liquidity: Low (long lock-ins)
Tradify Tip: Always align your investment choice with your financial goals, risk appetite, and liquidity needs. Start small, but start smart.
