Investment Funds VS Term Deposits. This is a challenge where both sides come out as winners because they fulfil different purposes, being both important parts of a diversified portfolio. Still, there are some characteristics we can compare: Regarding risk, funds have several types of risk and term deposits don’t have any. There is no defined profit from funds, whereas for deposits the profit is known beforehand. Funds do not have guaranteed capital and term deposits do. Profits can be higher when it comes to investment funds.