SIP vs RD: A Real Numbers Comparison Every Investor Should See
When discipline meets smart investing, wealth creation becomes possible
When it comes to disciplined savings, most Indians are familiar with Recurring Deposits (RDs). For decades, RDs have been the default choice for salaried individuals and families who want stability and predictability.
In recent years, Systematic Investment Plans (SIPs) in mutual funds have emerged as a strong alternative, offering the potential for higher long-term returns by investing in market-linked instruments.
It is “Which actually helps you build wealth?”
Safety is important, but inflation silently erodes purchasing power. A product that feels safe today may not help you achieve meaningful financial goals tomorrow.
To truly understand the difference, we must move beyond assumptions and look at real numbers, real outcomes, and real-life impact.
What is an RD?
A Recurring Deposit is a bank product where you deposit a fixed amount every month and earn guaranteed interest.
- Low risk
- Fixed returns
- Suitable for short-term goals
What is a SIP?
A Systematic Investment Plan allows you to invest a fixed amount regularly in mutual funds, mostly equity-oriented.
- Market-linked returns
- Long-term wealth creation
- Best for beating inflation
Real Numbers Comparison: SIP vs RD
Monthly Investment: ₹5,000
Investment Period: 10 Years (120 months)
🔹 RD Calculation
- Interest Rate: 6.5% p.a.
- Total Investment: ₹6,00,000
- Maturity Amount: ₹8,40,000
- Net Gain: ₹2,40,000
🔹 SIP Calculation
- Expected Return: 12% p.a.
- Total Investment: ₹6,00,000
- Portfolio Value: ₹11,60,000
- Net Gain: ₹5,60,000
| Particulars | RD | SIP |
|---|---|---|
| Monthly Investment | ₹5,000 | ₹5,000 |
| Investment Period | 10 Years | 10 Years |
| Total Invested | ₹6,00,000 | ₹6,00,000 |
| Expected Return | 6.5% | 12% |
| Final Value | ₹8.4 Lakhs | ₹11.6 Lakhs |
| Wealth Difference | — | ₹3.2 Lakhs More |
SIP vs RD – Live Calculator
Enter your investment details below and instantly compare wealth creation through SIP and RD.
RD returns barely beat inflation, while SIP returns grow your real purchasing power.
👉 Money that does not beat inflation loses value silently.
| Investment | Invested Amount (₹) | Nominal Return % | Amount After 5 Years (₹) | Inflation-Adjusted Return (₹) |
|---|---|---|---|---|
| RD | 1,00,000 | 6% | 1,34,000 | ≈ 1,27,000 |
| SIP (Equity) | 1,00,000 | 12% | 1,76,000 | ≈ 1,56,000 |
But making money work for you is essential.
- Children’s education
- Retirement planning
- Wealth creation
At JK Finwealth, we help you select SIPs aligned with your goals, time horizon, and risk profile — not generic returns.
👉 Start your SIP journey today and let time do the heavy lifting.
Ready to Make Your Money Work?
At JK Finwealth, we help you choose SIPs aligned with your financial goals, time horizon, and risk profile — not generic advice.
📱 Chat on WhatsApp NowThe content of this blog is for educational and awareness purposes only and should not be construed as any form of investment advice, offer, or solicitation. Mutual funds are subject to market risks, including the possibility of loss of principal. Past performance is not indicative of future returns. The figures, illustrations, and calculations provided in this blog are for example purposes only and do not represent actual investment outcomes. Readers should consult a qualified financial advisor before making any investment decisions.
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Mutual Fund investments are subject to market risks. The NAV of units may go up or down depending on the factors and forces affecting the capital markets. Past performance of the Mutual Fund/AMC does not indicate the future performance of the scheme. The name of the Mutual Fund, its Sponsor, AMC, or any scheme does not indicate the quality of the scheme, its future prospects, or returns. Investors are advised to read the offer document carefully before investing.