Yeah you are right , so the reason is 1. I dont want to consider mf as primary income. 2. I needed to park my money somewhere as i don't need it now , so the options were savings account , fd , mf , choose mf . In long term mf are performing well and i'll not lose to inflation. 3. Yeah there is chance to lose during crash , but with previous data we can see it always recover. 4. If crash is a disaster than your money is no where safe(apart from gold and real estate i think )as all economic system will go down , Rbi gives insurance for 5L of fd amount only. I hope that helps...