Savings vs FD vs Gold vs Mutual Fund SIP Calculator
About This Comparison
The same monthly saving habit produces dramatically different outcomes depending on where the money is invested. This calculator projects a fixed monthly investment across four common options in India — a savings account, a bank fixed deposit, gold, and a mutual fund SIP — so you can see the compounding gap directly, in rupees, over your chosen time horizon.
Why the comparison matters
A savings account is the safest, most liquid option but typically pays 3–4% — often below inflation, meaning your money quietly loses real purchasing power even as the number on your passbook grows. A fixed deposit locks in a guaranteed 6–8% with zero market risk, useful for near-term goals or emergency reserves. Gold has historically delivered 8–10% over long periods and works well as an inflation hedge and diversifier. A mutual fund SIP in equities has the highest long-term growth potential (historically 10–14% CAGR over 10+ years) but comes with market volatility and no guarantee.
How to use this calculator
Enter your monthly investment amount and time horizon, then adjust the return-rate assumptions for each asset class if you want to model a different scenario. The result shows the final corpus for each option side by side, making the “cost” of choosing safety over growth (or vice versa) concrete rather than abstract.
A balanced approach
Most financial plans use a mix rather than one instrument exclusively: a savings account for liquidity (3–6 months of expenses), an FD or debt fund for near-term goals (1–3 years), gold for diversification (5–15% of portfolio), and equity mutual fund SIPs for long-term wealth creation (5+ year goals). Use this calculator to understand the trade-offs, then work out an allocation that matches your own goals and risk appetite.
Frequently Asked Questions
How does this calculator compare savings, FD, gold, and mutual fund SIP?
It applies the same monthly investment amount and time period to four different return assumptions — a savings account (~3%), a fixed deposit (~7%), gold (~9%), and a mutual fund SIP (a conservative-to-aggressive range, typically 10–12%) — and projects the final corpus for each using standard compound growth (FD, gold) or SIP future-value (mutual fund) formulas. This lets you see, side by side, how the same monthly discipline compounds very differently depending on where you park it.
Why does the mutual fund SIP show a range instead of one number?
Equity mutual fund returns are market-linked and not guaranteed, so this calculator shows a conservative-to-aggressive range (default 10–12%) rather than a single misleading number. Historically, large-cap equity funds have delivered 10–12% CAGR over 10+ year periods, while more aggressive mid/small-cap allocations have delivered 12–16%. Adjust both sliders to match your own risk assumption.
Is gold a good long-term investment compared to mutual funds?
Gold has historically returned around 8–10% CAGR in India over long periods, acting mainly as an inflation hedge and portfolio diversifier rather than a primary wealth-building asset. Equity mutual funds have historically outperformed gold over 10+ year horizons but carry higher short-term volatility. Most financial planners recommend a modest gold allocation (5–15% of portfolio) alongside, not instead of, equity investments.
Why is a savings account the worst performer in this comparison?
Savings accounts pay 3–4% interest, which is usually below India's long-term average inflation rate of 5–6%. This means money sitting in a savings account for years actually loses purchasing power in real terms, even though the nominal balance grows. This calculator makes that erosion visible by showing exactly how far behind a savings account falls compared to FD, gold, or SIP over the same period.
Are these returns adjusted for tax and inflation?
No — this calculator shows nominal (pre-tax) returns to keep the comparison simple and directly comparable across instruments. In reality: savings account and FD interest is taxed at your income slab rate; gold gains held over 3 years qualify for indexed long-term capital gains treatment (physical gold) or slab-rate/LTCG depending on the instrument (digital/SGB); equity mutual fund LTCG (above ₹1.25 lakh/year) is taxed at 12.5%. Factor these differences in before making a final allocation decision.
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Disclaimer: Returns are not guaranteed or assured. The calculator's accuracy is not warranted. Before making any investment decisions, please seek advice from your financial advisors.
