Gold vs fixed deposit (FD) vs mutual funds: Which is a better plan for retirement?


If you want to have a financially secured retirement, it is essential to know where to invest for best results. Here, in this article, we’ll discuss the these three popular investment options:

Fixed Deposits

fixed deposit (FD) is a traditional investment model that guarantees a risk-free return. Though fixed deposits offer a relatively lower interest rate, the absence of risk factors is a great advantage for the retirees. As a result, your invested money remains safe, and the periodic interest acts as an added benefit. The periodic interest payouts will help you to manage your daily expenses in the post-retirement period.

An FD can be an ideal investment plan if you are looking for a regular, stable income source after your retirement. However, it is advisable to go with the highest fixed deposit interest rates to get the best possible return. 


Thanks to its outstanding stability and fast convertibility nature, many financial advisors and investment pundits consider gold as one of the safest investment options for retirement. You can buy gold bullion or gold coins as an investment for retirement. Bullion is basically gold in the form of a bar, having a stamp printed on it that comprises information on the amount and purity level of gold in the bar. Investing in gold coins or bullion can be extremely beneficial to counter problems like unforeseen medical expenses or immediate cash requirement during old age. With very little documentation, one can exchange the gold coin or bullion for cash or sell it at any given location around the globe. 

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You can purchase gold coins or bullion from financial institutions, brokerage firms and lenders. However, people who are planning to invest in gold as their retirement plan should consider that the risk factor in gold is a little higher than that of a fixed deposit.

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Mutual Funds

All mutual funds are not high-risk investments. The risk related to mutual funds differs with the kind of fund you select, based on your risk appetite. Debt mutual funds are one such investment option where you can minimize the chances of risk, considerably. These are the mutual funds that invest in fixed income instruments such as corporate bonds, commercial paper, corporate debt securities, etc. For your retirement, you need to focus more on the security aspect than the return; therefore, a debt mutual fund can be a wise place to invest your hard-earned money as a part of your retirement plan. 

Here, it is essential to remember that the return on a mutual fund is subject to changes in market conditions, and at times, it might generate a negative return as well. Hence, it is not wise to entirely depend on mutual funds for your retirement. 


As you may have realized, these three investment options have their own set of pros and cons. However, all of them ensure the safety of your capital, which is essential in the post-retirement period. Therefore, you can consider investing in all the three options to get a better return with minimum risk and build a corpus for your post-retirement needs. 

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