India investing decision guide
Fixed Deposit vs SIP in India: choose by timeline first, return second
Who this is for: savers deciding where monthly surplus belongs across 3, 5, and 10-year goals.
10-year projection snapshot
| Monthly invest | FD @ 7.0% (10y) | SIP @ 12.0% (10y) | Decision note |
|---|---|---|---|
| ₹5,000 | ~₹8,60,000 | ~₹11,60,000 | SIP only if 5+ year volatility is acceptable. |
| ₹10,000 | ~₹17,20,000 | ~₹23,20,000 | Hybrid split works well for uncertain goals. |
| ₹25,000 | ~₹43,00,000 | ~₹58,00,000 | Goal bucket segregation is mandatory. |
| ₹50,000 | ~₹86,00,000 | ~₹1,16,00,000 | Use rebalancing and risk-cap rules. |
Choose allocation by goal window
- 0–3 year goals
- Keep most money in FD or high-liquidity buckets to avoid forced exits.
- 5+ year goals
- SIP can take larger allocation if you keep one year withdrawals in stable assets.
- Variable income
- Build FD ladder first, then increase SIP after 2–3 stable quarters.
Failure checkpoints
SIP-heavy plans fail when equity money is needed during drawdowns; FD-only plans fail when post-tax returns trail inflation. Hybrid plans fail when never rebalanced after salary or timeline changes.