Mutual Fund vs FD Comparator

What This Comparator Does

This calculator puts a mutual fund SIP and a bank Recurring Deposit side by side, using the same monthly contribution and time period for both, so you can see the projected difference in outcome at your chosen assumptions for each.

The Formulas

The mutual fund side uses the standard SIP future value formula at your expected market return. The FD/RD side uses the recurring deposit maturity formula - each monthly deposit compounding at the fixed bank rate for its own remaining tenure - matching how an actual bank RD would be structured for a fair, like-for-like comparison against monthly SIP contributions.

How to Use It

Enter your monthly investment amount and the time period, then set two separate rates: the return you expect from the mutual fund, and the interest rate a bank RD would offer for the same tenure. The calculator shows the projected final value for each option side by side, with a bar chart for a quick visual comparison.

This Isn't an Apples-to-Apples Risk Comparison

A bank RD's rate is fixed and guaranteed by the bank (within deposit insurance limits); a mutual fund's return is market-linked, not guaranteed, and can be negative in poor years even though the long-term average may be higher. This calculator only compares the projected end values at the rates you assume - it doesn't and can't capture the very different risk profiles of the two products. The "right" choice depends on your risk tolerance, time horizon, and whether the money is for an essential, near-term goal or a longer-term one where you can absorb volatility.

Who This Is For

Anyone weighing a guaranteed, lower-risk RD/FD against a market-linked mutual fund SIP for the same monthly amount, and wanting to see the potential outcome difference at their own rate assumptions.