Financial Reality Engine

FD vs RD vs Mutual Funds — real returns after tax & inflation

Configure● Live
General
Duration10 yrs
Tax Slab30%
Inflation6%
Fixed Deposit
Amount₹5.00L
Interest Rate7%
Recurring Deposit
Monthly₹10,000/mo
Interest Rate6.5%
Mutual Funds
Monthly SIP₹10,000/mo
Expected CAGR12%
Nifty 50 historical: ~12% CAGR
₹29.00L
Total Invested
₹23.23L
Best Nominal Corpus
₹12.28L
Best Real Value
₹9.71L
Lost to Inflation
🏆 SIP wins
+4.40% real/yr
Fixed Deposit
-1.04%
real/yr · after 30% tax & 6% inflation
Invested
₹5.00L
Gross Corpus
₹9.84L
Post-Tax
₹8.39L
Real Value
₹4.68L
💸 Losses
Tax paid₹1.45L
Inflation erosion₹3.70L
Recurring Deposit
-1.37%
real/yr · after 30% tax & 6% inflation
Invested
₹12.00L
Gross Corpus
₹16.93L
Post-Tax
₹15.45L
Real Value
₹8.63L
💸 Losses
Tax paid₹1.48L
Inflation erosion₹6.82L
BEST REAL RETURN
Mutual Funds (SIP)
+4.40%
real/yr · after 30% tax & 6% inflation
Invested
₹12.00L
Gross Corpus
₹23.23L
Post-Tax
₹21.99L
Real Value
₹12.28L
💸 Losses
Tax paid₹1.25L
Inflation erosion₹9.71L
Expected vs Reality
Nominal
Post-Tax
Real Value
Fixed Deposit
₹9.84L
₹8.39L
₹4.68L
Rec. Deposit
₹16.93L
₹15.45L
₹8.63L
Mutual Funds
₹23.23L
₹21.99L
₹12.28L
Year-by-Year Breakdown
YearInvestedGrossTax PaidPost-TaxReal ValueReal Gain
Year 1₹5.00L₹5.35L₹10,500₹5.25L₹4.95L-₹5,189
Year 2₹5.00L₹5.72L₹21,735₹5.51L₹4.90L-₹9,866
Year 3₹5.00L₹6.13L₹33,756₹5.79L₹4.86L-₹14,058
Year 4₹5.00L₹6.55L₹46,619₹6.09L₹4.82L-₹17,790
Year 5₹5.00L₹7.01L₹60,383₹6.41L₹4.79L-₹21,087
Year 6₹5.00L₹7.50L₹75,110₹6.75L₹4.76L-₹23,971
Year 7₹5.00L₹8.03L₹90,867₹7.12L₹4.74L-₹26,464
Year 8₹5.00L₹8.59L₹1.08L₹7.51L₹4.71L-₹28,584
Year 9₹5.00L₹9.19L₹1.26L₹7.93L₹4.70L-₹30,352
Year 10₹5.00L₹9.84L₹1.45L₹8.39L₹4.68L-₹31,784
💡 Smart Insights
🚀SIP at 12% CAGR delivers +4.40%/yr real return. That's genuine wealth creation — purchasing power grows every year.
⚠️Your FD is losing purchasing power at -1.04%/yr. Bank balance grows but each rupee buys less. FD is safe parking, not wealth creation.
SIP overtook FD at Year 4. You're 6 years past the crossover — that's ₹7.59L more real wealth.
🧾Tax takes 30% of FD gains (30% slab) vs only 11% of MF gains. LTCG is far more efficient.
📊At 6% inflation, purchasing power halves every 12 years. Any investment earning less than 6% post-tax is shrinking your real wealth.
Calculations use Fisher Equation for real returns. FD/RD tax at income slab rate. MF uses 12.5% LTCG with ₹1.25L exemption (Budget 2024). Not investment advice. Consult a SEBI-registered advisor.