How big is the gap between SIP and FD after 10 years?
Both invest ₹12L over 10 years. SIP returns ₹5L more.
Same money, same duration. The only difference is where you put it. SIP ends up giving you ₹5L more — roughly ~4 years of your monthly savings.
Common questions
Is ₹10,000/month SIP in Equity Mutual Funds better than Fixed Deposit (FD) for 10 years?
Based on estimated returns, yes — at a 30% tax slab. At 12% CAGR, SIP gives ₹22.4L vs FD's ₹17.4L before tax. After tax and inflation, SIP's estimated real return is +4.4%/yr vs FD's -1.0%/yr. Use the tax slider above to see your bracket.
What is ₹10,000/month SIP worth after 10 years?
At 12% CAGR, ₹10,000/month SIP in Equity Mutual Funds for 10 years gives approximately ₹22.4L on ₹12L invested. After 12.5% LTCG tax on gains above ₹1.25L, you get approximately ₹21.3L. Actual returns depend on market performance and are not guaranteed.
What is ₹10,000/month Fixed Deposit (FD) interest in 10 years?
At 7% interest, ₹10,000/month FD for 10 years gives approximately ₹17.4L. After 30% income tax on interest, approximately ₹15.8L. With 6% annual inflation, that has the purchasing power of ₹8.8L in today's money.
In which year does SIP overtake Fixed Deposit (FD) for ₹10,000/month?
At 12% SIP and 7% FD, SIP edges ahead from year 1, but the lead is small in early years. The gap accelerates after year 5 and reaches ₹5L by year 10. If you assume more conservative SIP returns (9–10%) or higher FD rates (8%+), FD can stay ahead through year 4 or 5.
Is SIP in Equity Mutual Funds safe? What if markets crash?
SIP in Equity Mutual Funds does not guarantee your capital — unlike Fixed Deposit. In 2020, equity mutual funds fell ~35% before recovering. Over any 10-year period in Indian market history, patient SIP investors have not had negative returns — but this is not a guarantee. If you need money on a specific date, FD is genuinely safer.