SIP vs Fixed Deposit
Compare Systematic Investment Plans with Fixed Deposits to make informed investment decisions
SIP vs Fixed Deposit: Complete Comparison Guide
Confused between SIP (Systematic Investment Plan) and Fixed Deposit (FD)? You're not alone. This is one of the most common financial dilemmas. Our comprehensive comparison helps you understand the key differences, advantages, and disadvantages of both options. Compare Systematic Investment Plans with Fixed Deposits to make informed investment decisions Use our comparison tool and calculators below to make an informed decision based on your financial situation, goals, and risk appetite. We'll help you evaluate both options objectively so you can choose what's best for you.
Side-by-Side Comparison
| Feature | SIP (Systematic Investment Plan) | Fixed Deposit (FD) |
|---|---|---|
| Risk Level | Medium to High | Low |
| Returns/Benefits | 10-15% annually | 5-7% annually |
| Liquidity | High | Medium |
| Best For | Long-term wealth | Capital safety |
Pros and Cons
SIP (Systematic Investment Plan)
✓ Advantages
- Potential for higher returns
- Flexibility and control
- Tax benefits available
- Builds long-term wealth
✗ Disadvantages
- Market risk involved
- Requires discipline
- Returns not guaranteed
- Needs longer time horizon
Fixed Deposit (FD)
✓ Advantages
- Lower risk profile
- Guaranteed returns
- Easy to understand
- Capital protection
✗ Disadvantages
- Lower returns
- Inflation impact
- Limited flexibility
- Opportunity cost
Frequently Asked Questions about SIP vs Fixed Deposit
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