Compare Investments: SIP vs RD vs Lumpsum vs FD vs Debt

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Compare Investments: SIP vs RD vs Lumpsum vs FD vs Debt

Visually compare multi-stage growth across 5 assets with real-time tax slabs, step-ups, and inflation drag.

Growth Outlook Presets:

1. Investment Scenario Fundamental capital inputs that govern projections across all five investment instruments.

2. Expected Returns, Tax & Inflation Macroeconomic and asset-specific performance rates impacting real purchasing power.

Investment Comparison Summary Side-by-side post-tax and inflation-adjusted comparison across 5 asset classes.

SIP (Mutual Fund)

Invested₹0
Est. Returns (Pre-Tax) Estimated returns calculated prior to capital gains deduction. ₹0
Maturity (Pre-Tax) Total maturity amount without deducting any taxes. ₹0
Maturity (Post-Tax*) Actual take-home money after applying equity capital gains tax (LTCG / STCG). ₹0
Real Value Value adjusted for inflation, showing purchasing power in today's terms. ₹0

Risk: High | Good for Long-Term Growth

Recurring Deposit (RD)

Invested₹0
Est. Returns (Pre-Tax) Estimated returns calculated prior to slab tax deduction. ₹0
Post-Tax Returns Interest returns remaining after annual income tax slab deductions. ₹0
Maturity (Pre-Tax) Total maturity amount without deducting any taxes. ₹0
Maturity (Post-Tax) Actual take-home money after deducting interest taxes. ₹0
Real Value (Post-Tax) Value adjusted for inflation, showing purchasing power in today's terms. ₹0

Risk: Very Low | Good for Short-Term Safety

Lumpsum (Equity)

Invested₹0
Est. Returns (Pre-Tax) Estimated returns calculated prior to capital gains deduction. ₹0
Maturity (Pre-Tax) Total maturity amount without deducting any taxes. ₹0
Maturity (Post-Tax*) Actual take-home money after applying equity capital gains tax (LTCG / STCG). ₹0
Real Value Value adjusted for inflation, showing purchasing power in today's terms. ₹0

Risk: High | Maximize Long-Term Growth

*Invested = Lumpsum + Total Monthly Contributions.

FD vs Debt (Post-Tax)

For equivalent Lumpsum investment.

Net Interest (Post-Tax) FD interest/profit remaining after income tax slab deductions. ₹0
Maturity (Post-Tax) Actual take-home money from FD (Principal + Net Interest) after slab taxes. ₹0
FD Real Value Value adjusted for inflation, showing purchasing power in today's terms. ₹0
Net Gains (Post-Tax*) Debt Fund capital gains/profit remaining after redemption tax. ₹0
Maturity (Post-Tax*) Actual take-home money from Debt Funds (Principal + Net Gains) after redemption tax. ₹0
Debt Real Value Value adjusted for inflation, showing purchasing power in today's terms. ₹0

FD: Risk-Free | Debt: Low Risk

*Debt tax uses indexation if > 3 yrs.

Final Value Comparison (Post-Tax / Inflation Adjusted)

Showing Real Value if inflation adjustment is ON, otherwise Post-Tax Value.

Investment Growth Over Time (Adjusted)

Showing Real Value if inflation adjustment is ON, otherwise Post-Tax Value.

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Regulatory Advisory & Risk Disclaimer

Calculations are strictly illustrative estimates based on user inputs. Historical asset class CAGR statistics are not guarantees of future performance. Consult registered SEBI financial advisors for personalized financial planning. Debt Fund tax calculations include simplified indexation models for holdings exceeding 3 years.

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Why Compare SIP, RD, Lumpsum, & FD Side-by-Side?

Choosing the right financial instrument requires balancing risk, liquidity, compounding cycles, and post-tax yields. While high-growth mutual fund SIPs compound aggressively over multi-year horizons, fixed income vehicles like Fixed Deposits (FD) and Recurring Deposits (RD) provide unmatched sovereign capital safety.

Our SIP vs FD vs RD Calculator functions as an intelligent playground. For any timeframe, compare how a regular monthly investment behaves in an equity SIP vs a banking RD, and evaluate how a bulk lumpsum principal compounds in an FD vs a post-tax Debt Fund portfolio.

Understanding the 5 Asset Classes & Key Benefits

Every investor has different financial goals, risk appetites, and tax brackets. Here is a clear, human-friendly breakdown of all 5 options compared in this tool:

1. Equity SIP (Systematic Investment Plan)

What it is: Investing a fixed sum every month into equity mutual funds. Benefits from rupee cost averaging and long-term market compounding (12-15% avg. CAGR).

2. Bank RD (Recurring Deposit)

What it is: Depositing a fixed monthly sum into a bank at a guaranteed, risk-free interest rate (6-7.5%). Ideal for short-term capital safety.

3. Equity Lumpsum

What it is: Deploying a single bulk sum into equity mutual funds upfront. Highest growth potential over 7+ years, but subject to entry timing volatility.

4. Bank FD (Fixed Deposit)

What it is: Locking a lump sum amount for a fixed tenure at guaranteed interest with quarterly compounding. 100% principal safety backed by DICGC insurance.

5. Debt Mutual Funds

What it is: Investing lump sums in government securities and corporate bonds. Offers higher tax efficiency than FDs for multi-year holding periods.

Key Benefits of Using This Comparison Tool

  • Post-Tax Clarity: See your actual take-home maturity after applying real Indian income tax slabs (0% to 30%).
  • Real Inflation Protection: Learn whether your fixed income returns actually beat inflation or lose purchasing power over time.
  • Smart Step-Up Planning: Discover how increasing your monthly SIP/RD by just 10% annually dramatically multiplies final wealth.

How to Compare Investments Step-by-Step

1

Set Scenario Limits

Specify initial lumpsum and monthly investment amounts along with your target tenure in years.

2

Configure Returns & Presets

Customize return yields for SIP, RD, FD, and Debt Funds, or click a Growth Outlook preset.

3

Enable Tax & Inflation

Select your tax slab (0%-30%) and turn on inflation adjustment to inspect real purchasing power.

4

Analyze Growth Ledger

Compare side-by-side cards, toggle visual charts, and export the Year-on-Year Growth Ledger to CSV/PDF.

Core Compounding Formulas At A Glance

Lumpsum & FD One-Time
Maturity = Principal × (1 + r)t

P = Deposit • r = Annual return rate • t = Years.

Monthly SIP & RD Monthly
Maturity = Monthly × [((1 + i)n − 1) / i] × (1 + i)

i = Monthly rate (r ÷ 12) • n = Total months (t × 12).

Inflation Adjustment Purchasing Power
Real Value = Nominal Amount ÷ (1 + Inflation)t

Discounts future corpus into today's purchasing power.

Post-Tax Returns Net In-Hand
Net Value = Invested + [Gains × (1 − Tax Rate)]

Taxes apply strictly to earnings, never to principal.

Frequently Asked Questions (FAQ)

1. Which option among SIP, RD, and FD is best for me?

If your investment horizon is long-term (5+ years) and you can tolerate market volatility, SIP is the best option. If you prefer safe and guaranteed returns for the short-to-medium term, Fixed Deposits or Recurring Deposits are highly secure.

2. How do inflation-adjusted calculations change investment results?

Inflation gradually reduces the purchasing power of your money over time. Enabling the inflation adjustment feature shows the true value of your future accumulated wealth in today's terms.

3. Is interest earned on bank FDs and RDs taxable?

Yes, interest earned on bank FDs and RDs is taxable according to your individual income tax slab rate (10%, 20%, or 30%). Selecting your tax slab in this tool provides your actual post-tax maturity value directly.

4. How is Mutual Fund SIP capital gains tax (LTCG) calculated?

Under Section 112A in India, long-term capital gains (LTCG) on equity mutual funds held for more than 12 months are tax-free up to ₹1.25 Lakh per financial year. Any gains exceeding this threshold are taxed at a flat rate of 12.5%.

5. How does an Annual Step-Up accelerate long-term wealth compounding?

An annual step-up systematically increases your monthly contribution (by 5%, 10%, etc.) each year in line with annual salary increments. Increasing your contributions periodically can boost your final accumulated wealth by 50% to 100% over a 15–20 year horizon compared to a flat monthly investment.