SIP vs Fixed Deposit: Which Investment Is Better?
SIP vs Fixed Deposit: Which Investment Is Better? A Certified Financial Planner's Complete Comparison Guide for Indian Investors Quick Answer SIP (Systematic Investment Plan) in mutual funds generally builds more wealth over the long term (7+ years) because it harnesses equity market growth, compounding, and rupee-cost averaging — but it carries market risk and short-term volatility. Fixed Deposits (FDs) offer guaranteed, predictable returns and capital safety, making them ideal for short-term goals, emergency funds, and capital protection — but they usually cannot beat inflation and taxation by a wide margin over long periods. The honest answer: there is no single "better" option — it depends on your goal, time horizon, and risk appetite. Most well-planned portfolios use both : FDs for safety and short-term needs, SIPs for long-term wealth creation. This guide breaks down exactly how to decide, with real numbers, tax rules, and goal-based frameworks. Introduction: ...