Compare SIP returns vs Fixed Deposit for the same monthly investment. See which grows your money more over time.
Over long periods (7+ years), equity SIPs have historically delivered 10–15% returns vs FD's 6–7.5%. But SIP returns are not guaranteed. For short-term goals under 3 years, FD is safer. For long-term wealth creation (10+ years), SIP in equity mutual funds is generally better after accounting for inflation and taxes.
Long-Term Capital Gains (LTCG) on equity mutual fund SIPs are taxed at 12.5% on gains above ₹1.25 lakh per year (as per Budget 2024). Units held for more than 12 months qualify for LTCG. Gains up to ₹1.25 lakh annually are completely exempt from tax.
Yes, FDs are very safe — deposits up to ₹5 lakh are insured by DICGC. Senior citizens get 0.25–0.5% extra interest rate on FDs. For seniors who need stable, predictable income without market risk, FD is often preferred over SIP.
Inflation-adjusted (real) return = ((1 + nominal return) / (1 + inflation rate)) - 1. If your SIP earns 12% and inflation is 6%, the real return is about 5.66%. This matters because ₹1 crore in 20 years is worth far less than ₹1 crore today. SIPs typically provide better inflation-beating returns than FDs.
To accumulate ₹1 crore: at 12% p.a. for 10 years, you need about ₹43,000/month SIP. For 20 years, just ₹10,000/month. For 30 years, only ₹2,800/month. The power of compounding over longer periods reduces the required monthly investment dramatically.