Confused between steady FDs and market-moving SIPs? Here’s how real smart investors choose.
-
SIP power: Rupee cost averaging
₹5,000 monthly turns into ₹20 lakhs over 15 years at 12% equity returns. Buy more units when markets dip. -
FD safety: Guaranteed returns
6-7% post-tax for retirees needing pension-like income. Premature withdrawal penalties apply though. -
Age-based strategy
20-40: Equity SIPs; 40-60: Debt/hybrid; 60+: FDs + senior schemes. Step-up SIPs match salary growth. -
Tax reality check
SIP LTCG 12.5% above ₹1.25 lakhs; FDs fully taxable. Demat holds all for easy diversification.
Start small, stay consistent—compounding works magic over decades.
