FD · Debt MF · Equity MF · Post-tax

FD vs Mutual Fund Comparison

Compare Fixed Deposits and Mutual Funds on an apples-to-apples basis — post-tax, inflation-adjusted real returns.

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Common Parameters

Investment amount (₹)

Lump sum investment.

Time horizon (years)

How long to stay invested.

Inflation rate (%)

To calculate real returns.

Your income tax slab (%)

Investment mode

🏦

Fixed Deposit

Safe

FD interest rate (%)

Current best bank FD rate.

Compounding

FD type

📈

Mutual Fund Options

Market-linked

Equity MF expected return (%)

Nifty 50 historically ~12%.

Debt MF expected return (%)

Liquid/short-term debt funds.

LTCG exemption/yr (₹)

₹1.25L for equity LTCG.

LTCG tax rate (%)

12.5% post Budget 2024.

🏦 Fixed Deposit

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Post-tax final value

Gross value—

Tax paid—

Effective return—

Real return (inflation adj.)—

📈 Equity MF

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Post-tax final value

Gross value—

Tax paid—

Effective return—

Real return (inflation adj.)—

📊 Debt MF (for comparison)

Post-tax value

—

Tax paid

—

Effective return

—

Real return

—

Equity MF

Debt MF

Recommendation

Calculate to compare

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📊 Return Comparison

FD post-tax return—

Equity MF post-tax return—

Debt MF post-tax return—

FD real return—

Equity MF real return—

Inflation eating FD gains—

Equity advantage over FD—

🔑 The key factors Tax slab matters most for FDs — at 30% slab, a 7% FD gives only 4.9% post-tax.

Equity MF wins on long horizons — the LTCG tax (12.5%) kicks in only on gains above ₹1.25L/yr, making equity far more tax-efficient.

Debt MF lost advantage — post 2023, debt MF gains taxed at slab rate, same as FD. FD is simpler for debt goals now.

Disclaimer: MF returns are not guaranteed. FD rates change periodically. Tax calculations are simplified. Consult a CA for your specific tax situation.