SIP vs Lumpsum Calculator – Dual Returns Compare
Run both Systematic Investment Plan (SIP) and lump sum calculations concurrently to analyze and compare their compounding wealth payouts side-by-side.
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Comparing Fixed Deposits vs Systematic Equity Mutual Funds
Fixed Deposits (FD) offer secure, guaranteed returns backed by bank security (insured up to ₹5 Lakhs by DICGC). Conversely, equity mutual funds offer market-linked returns that fluctuate but historically yield much higher compound growth over 5-10 year horizons.
Choosing the right avenue depends entirely on your financial goals, age, and risk tolerance. Conservative investors or those saving for short-term goals (under 3 years) should favor FDs, while wealth generation goals (5+ years) are better suited for SIPs.
Frequently Asked Questions (FAQ)
1. How are FD returns taxed in India?
FD interest income is taxed at your regular income tax slab rate, and banks deduct TDS (Tax Deducted at Source) if the annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
2. What are the tax rules for equity mutual funds?
Equity returns are classified as Long-Term Capital Gains (LTCG) if held for over 1 year, taxed at 10% for gains exceeding ₹1.25 Lakhs per financial year.