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

Visually evaluate multi-stage wealth compounding across 5 Indian asset classes with real-time income tax slabs, annual step-ups, and inflation discounting.

Growth Outlook Presets:
Step 1

Investment Scenario & Return Assumptions

Set monthly deposits, initial capital, tenure, annual step-ups, and expected market yields

1. Capital & Tenure Setup

15 Years

2. Expected Returns, Tax & Inflation

*Taxes apply strictly to investment earnings, never to principal.

6.0% p.a.
Step 2

Multi-Asset Comparison & Growth Analytics

Side-by-side post-tax maturity, purchasing power in today's money, and compounding trajectories

Investment Comparison Summary

5 Assets Compared

SIP (Mutual Fund)

Invested₹0
Est. Returns (Pre-Tax) ₹0
Maturity (Pre-Tax) ₹0
Maturity (Post-Tax*) ₹0
Real Value ₹0

Risk: High | Good for Long-Term Growth

Recurring Deposit (RD)

Invested₹0
Est. Returns (Pre-Tax) ₹0
Post-Tax Returns ₹0
Maturity (Pre-Tax) ₹0
Maturity (Post-Tax) ₹0
Real Value (Post-Tax) ₹0

Risk: Very Low | Good for Short-Term Safety

If Invested Day 1 (Equity)

Invested (Day 1)₹0
Est. Returns (Pre-Tax) ₹0
Maturity (Pre-Tax) ₹0
Maturity (Post-Tax*) ₹0
Real Value ₹0

Risk: High | Maximize Long-Term Growth

*Hypothetical benchmark: Assumes entire lifetime contributions (SIP + Lumpsum) deployed on Day 1.

FD vs Debt (Post-Tax)

For equivalent lifetime contributions on Day 1

Net Interest (Post-Tax) ₹0
Maturity (Post-Tax) ₹0
FD Real Value ₹0
Net Gains (Post-Tax*) ₹0
Maturity (Post-Tax*) ₹0
Debt Real Value ₹0

FD: Risk-Free | Debt: Low Risk

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.

Educational Planning Advisory: Mutual fund and market investments are subject to market risks. Calculations incorporate equity LTCG (12.5% > ₹1.25 Lakh exemption, formerly Section 112A / now Section 198 under the Income-tax Act, 2025) and STCG (20%, formerly Section 111A / Section 196) on equity schemes, with realistic Short-Term tax allocation for ongoing SIP instalments deposited within the final 12 months. Bank FD and RD utilize authentic quarterly compounding. Because banks do not accept lumpsums into an RD account, any initial lumpsum is modeled as an FD running alongside the recurring monthly deposit. Calculations reflect headline base rates (excluding health & education cess and high-income surcharges) and do not constitute certified tax advice.

Client-Side Privacy: All planning logic executes strictly in your browser. No financial data is ever stored on external web servers.

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

Balancing growth, sovereign security, compounding intervals, and post-tax realized yields

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

A breakdown of risk, taxation, and return dynamics across Indian portfolios

1. Equity SIP (Systematic Investment Plan)

What it is: Fixed monthly deposits into equity mutual funds. Benefits from rupee-cost averaging and long-term equity compounding (12%–15% avg. CAGR).

2. Bank RD (Recurring Deposit)

What it is: Fixed monthly bank deposits earning guaranteed contractual interest (6%–7.5%). Suited for near-term capital preservation.

3. Equity Lumpsum

What it is: Deploying bulk capital into equity funds upfront. Maximum compounding expansion over 7+ years, subject to entry-point market cycles.

4. Bank FD (Fixed Deposit)

What it is: Locking a lump sum amount for a fixed tenure at guaranteed interest with quarterly compounding and DICGC bank insurance backing.

5. Debt Mutual Funds

What it is: Investing lump sums in government securities and corporate bonds. Taxed at applicable slab upon redemption without intermediate annual TDS deductions.

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

Practical walkthrough to audit multi-asset yields
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

The underlying mathematical engines governing each calculation
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 = Months (t × 12).

Inflation Adjustment Purchasing Power
Real Value = Nominal Corpus ÷ (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

Key concepts on mutual funds, fixed income, taxes, and compound planning

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 generally superior due to equity compounding. If you prefer safe and guaranteed returns for the short-to-medium term, Fixed Deposits or Recurring Deposits provide capital stability.

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 real purchasing 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, substantially accelerating terminal wealth compared to maintaining a flat contribution.

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