Key takeaways
- Choose based on goal horizon and risk tolerance, not just headline returns.
- FD offers stability; SIP can offer higher long-term growth with volatility.
- Hybrid allocation often works better than either extreme.
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SIP vs FD: which is better for your goals?
SIP and FD serve different purposes: growth and inflation-beating potential versus capital stability and predictability.
Action path
- Project SIP outcomes with conservative and optimistic return assumptions.
- Compare post-tax FD results against inflation-adjusted needs.
- Split goals into short-term safety and long-term growth buckets.