Options
- A
She has to select the correct bank which is financially strong
- B
There is a high risk of default in her portfolio
-
There is a risk of low returns
Correct answer
- D
There is no risk as fixed deposits are quite safe
Why this is the answer
While fixed deposits are considered safe, they generally offer low returns, especially in comparison to other investment options like equity mutual funds. For long-term goals such as retirement, the low returns from fixed deposits may not be sufficient to outpace inflation and grow the required corpus.
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