Liquidity: Gold is the most sought-after form of investment for ease of liquidity. You can make a gold investment in several ways such as Gold ETFs, Sovereign Gold Bond, digital gold, etc. Although gold offers excellent liquidity, the returns depend on the present market scenario.

On the other hand, the liquidity on fixed deposits depends on the deposit terms of the financial institution you choose. You get the option to liquidate your fixed deposits prematurely. However, most financial institutions will levy a penalty on such premature withdrawals.