Imagine you are moving at 10 km per hour 🚗and your friend is moving at 11 km per hour🚙.
After 6 minutes they are only 100 m (1/10th of 1km) apart which is not very significant. You can literally see👀 each other.
After an hour you are 1 km apart. You can no longer see each other but still you aren’t all that far from each other. If you wish you can meet each other easily☕.
But after 10 hours you are 10 km apart and after 100 hours you are 100 km apart✈.
Now you are in two different cities. It’s too far to meet each other. Perhaps you have to speak over phone📱.
Likewise investing in a fixed deposit of 6% per annum or investing in a mutual fund of 10-15% per annum does not make a huge difference when invested for a period of 1 or 2 years📆.
However, if you were to invest for a period of 10 years to 15 years, the 4-9% difference becomes nearly 100-200%🙀.
Equity mutual fund is a more appropriate asset to invest in than a Fixed Deposit.
