SIP vs Fixed Deposit (FD)
Compare mutual fund SIP returns vs bank fixed deposit safety — which suits your goals, risk, and tax situation in India?
| Factor | SIP (Mutual Fund) | Fixed Deposit |
|---|---|---|
| Typical return | 10–14% p.a. (market-linked) | 6–7.5% p.a. (fixed) |
| Risk | Market volatility | Low — bank guaranteed |
| Liquidity | T+1 to T+3 redemption | Penalty on premature break |
| Tax | LTCG/STCG on equity funds | Interest taxed as income |
| Best for | Long-term wealth (5+ years) | Short-term parking, safety |
Verdict: Choose SIP for long-term goals and inflation-beating growth. Choose FD when capital safety and predictable income matter more than maximum returns.
📖 Read the full guide: SIP vs Fixed Deposit (FD) — detailed blog · Finance calculators guide