One of my colleagues has been busy finding which bank offers the best FD rate; but, he was very disappointed as the best rate is only 1.88% with 6 months lock-in period.
I advised him to invest if the money is not meant for emergency use or short term.
However, investing involves risks, and not many people are willing to take higher risks, spent more time educating themselves on stock investing for better returns.
For many years, I have been like him; not willing to take higher risks as I have heard too many sad stories of how people got burnt when market crashed. I was fearful then. I put my money in FD for many years and wasted many of years of opportunity of growing wealth.
We must spent more time on financial education, monitor the market closely, and learn to take higher risks for better returns.
Looking back at the bold decision that I have taken in 2003 when I decided to take higher risks, spent more time educating myself on trading, and started active stocks trading.
See the above table for the result of returns vs FD rate.
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