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FD or MF: Which Is Best for Your Wealth?

Explore beyond Fixed Deposit

“Smarter Alternatives for Your Idle Money”

Why Look Beyond FDs?

Fixed Deposits (FDs) have been a traditional choice for safe returns. However, they often give limited growth, especially when inflation and taxes are considered. With mutual funds in debt and hybrid categories, you can aim for higher risk-adjusted returns—while still maintaining stability.

FD vs Smart Portfolios (Illustration)

Type Equity Allocation Equity Risk % (40% Crash) Corona Crash % Back-Tested CAGR % Value of ₹10 Lakh After 10 Years*
GrowStep25 5–25% iModerate equity exposure with flexibility 0–10% iRisk cushion with debt allocation 6.46% 10.56% ₹27,28,854
ZeroStep25 0–25% iEquity exposure up to 25% 0–10% iLow downside risk 5% 10.25% ₹26,53,298
Steady5 5% iConservative portfolio 2% 1.96% 8.47% ₹22,54,740
Steady10 10% iLow equity exposure 4% 0.22% 9% ₹23,67,364
Fixed Deposit 0% 0% 0% 7% ₹19,67,151

*Disclaimer: The data shown above is for illustrative purposes only. Past performance does not guarantee future results. Mutual fund investments are subject to market risks; please read all scheme-related documents carefully before investing.

Key Takeaways

  • Even a small equity allocation can boost long-term returns.
  • Portfolios with 5–25% equity stayed resilient during the 2020 Corona Crash.
  • Over 10 years, these hybrid strategies outperformed FD returns significantly.
  • Your money can grow smarter without taking full stock market risk.

Why Mutual Funds Can Be Better

  • Tax Efficiency: Certain funds allow indexation benefits, reducing tax liability.
  • Liquidity: Withdraw money anytime without penalty.
  • Diversification: Your money is spread across bonds, equities, and other assets.
  • Better Growth Potential: Opportunity to earn more than traditional savings.

Who Should Consider This Option?

  • Investors who find FD returns too low.
  • People in higher tax brackets seeking more efficient alternatives.
  • Anyone looking for stable but slightly better growth than savings or FD.
  • Those who want flexible access to money without lock-in.

Our Value-Add

  • Recommend the right debt or hybrid fund based on your tax slab and goal.
  • Create custom portfolios that balance safety and returns.
  • Regularly review and rebalance so your money stays on track.

Disclaimer

“These portfolios are illustrative only and do not represent actual mutual fund schemes. The data shown is based on back-testing and for educational purposes. Mutual Fund investments are subject to market risks. Returns are not guaranteed and past performance is not indicative of future results. Please read all scheme-related documents carefully before investing.”

Take the Smarter Step

“Don’t just park your money—make it work harder. Explore debt and hybrid mutual funds as better alternatives to FDs.”

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For official mutual fund data and SIP resources, visit AMFI