SIP vs Fixed Deposit (FD) Comparison
Compare Equity Index Mutual Funds against Fixed Deposits under real-world taxation (12.5% LTCG vs 0%-30% Income Tax) and economic inflation.
Comparison Setup
Monthly Investment
₹
₹1,000₹2 Lakhs
Time Horizon
Yrs
1 Yr30 Yrs
Equity MF Expected CAGR
%
6%20%
*Taxed at 12.5% LTCG on gains exceeding ₹1.25L/year after 12 months.Fixed Deposit Rate (p.a.)
%
4%10%
New Tax Regime Slab (FY 2025-26)30%
Tax Bracket:Above ₹24L (30%)
*Applies to FD interest annually (TDS) and Debt MF at final redemption under Section 50AA. Income up to ₹12L has full 87A rebate (0% tax).
Inflation Benchmark
%
3%12%
Mutual Fund Final (Post-Tax)
₹46,55,665
Real Purchasing Power: ₹16,87,427
Fixed Deposit Final (Post-Tax)
₹26,57,062
Real Purchasing Power: ₹9,63,042
Wealth Gap (Opportunity Cost)
+₹19,98,603
Mutual Funds created 1.75x the wealth of FD!
The Mathematics of Real Wealth Divergence
Over 15 years, investing ₹10,000/month (total invested: ₹18,00,000) results in an extra ₹19,98,603 in Mutual Funds after accounting for 12.5% LTCG tax.
FD Wealth Erosion: At 30% tax and 7% inflation, your fixed deposit lost purchasing power in real terms.