Fixed Deposit vs Equity Mutual Fund
Compare conservative fixed-return deposits with equity compounding over 5 to 20 years.
By choosing disciplined equity mutual funds over a 10-year horizon, your money works harder to beat inflation.
Start Direct Mutual Fund SIP →FD: Compounded quarterly at 7% p.a. vs Equity MF: Monthly compounding at 12% assumed rate.
Compounding is assumed monthly in line with mutual fund SIP convention. All returns are illustrative and not guaranteed.
Frequently Asked Questions
Is mutual fund riskier than an FD?
Yes. Bank Fixed Deposits offer capital guarantee (up to ₹5L insurance), whereas equity mutual funds fluctuate with the market. For horizons over 7 years, equity has historically beaten inflation significantly.
What about tax efficiency?
FD interest is taxed at your income tax slab rate every year. Equity mutual funds held for over 12 months benefit from Long Term Capital Gains (LTCG) tax rates.