Compare returns from Mutual Fund, Gold, FD, LIC, Bonds and Savings Account — side by side. Edit any rate, change frequency, and add a holding period to model your real-world scenario.
| Option | Total invested | Expected return % tap to edit | Maturity value | Total returns | Absolute gain |
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Enter your investment amount, choose a frequency (monthly, quarterly, half-yearly or yearly), set the investment period in years, and optionally add a holding period — the time after your last deposit during which your corpus continues to compound without new investments. The calculator instantly shows a ranked comparison of six investment options.
Every expected return rate is editable. Click any percentage in the table to change it to match current market rates or your own assumptions. The charts and summary update in real time.
India's most popular investment options vary widely in their risk-return profiles:
The holding period simulates real-world scenarios where you stop investing (e.g., at retirement) but leave your corpus untouched to continue compounding. Even 3–5 years of additional compounding on a large corpus can add significantly more wealth than the same years of active investment. For example, a ₹10,000/month SIP for 20 years that is then held for 5 more years can deliver nearly 50% more maturity value than withdrawing at the end of year 20.
Mutual funds (equity) have historically delivered 12–15% CAGR over 10+ years versus FD's 6–7%. Over a 15-year horizon a ₹10,000/month SIP in an equity mutual fund can grow to nearly 3× the maturity value of an FD at the same amount. However FDs are capital-guaranteed while mutual fund returns vary with markets.
Both have delivered similar 10-year CAGRs of 11–12% historically. Mutual funds (especially equity) offer better liquidity, SIP discipline, and no storage cost. Gold acts as a hedge against inflation and currency risk. Most advisors recommend 10–15% of a portfolio in gold alongside equity mutual funds rather than choosing one over the other.
Bank FDs up to ₹5 lakh are insured by DICGC making them virtually risk-free. AAA-rated corporate bonds are safe but carry slightly more credit risk than bank FDs. Bonds typically offer 0.5–1.5% higher interest than FDs of the same tenure. Government bonds (G-Secs) are as safe as FDs with better yields for longer tenures.
Mutual funds are significantly better for wealth creation — an equity SIP at 12% CAGR will far outpace a LIC endowment plan's typical 5–5.5% XIRR over 15–20 years. LIC provides life cover and guaranteed returns, making it suitable for risk-averse investors. The ideal approach is to separate insurance (term plan) from investment (mutual fund).
Over the last 10 years (2014–2024) gold delivered roughly 11% CAGR versus FD's 6–7%, but gold is volatile and non-income-generating. FDs offer predictable interest income and are ideal for short-term (1–3 year) goals. Gold suits 5+ year horizons as an inflation hedge. For regular investment, Sovereign Gold Bonds (SGBs) combine gold returns with 2.5% annual interest.
For a moderate risk investor, debt mutual funds or AAA corporate bonds (8% avg) offer better post-tax returns than FDs while being less volatile than equity funds. A balanced allocation of 60% equity mutual funds and 40% bonds/debt funds is the standard moderate-risk portfolio for 5–10 year goals.
AAA-rated bonds at 8% clearly outperform LIC endowment plans at 5–5.5% XIRR. Bonds offer pure investment returns without insurance costs embedded. LIC endowments bundle insurance with savings, which dilutes returns. For returns alone, bonds win; for life cover, a separate term plan is more cost-effective than LIC endowment.
Savings accounts (3–4%) are for emergency funds and short-term liquidity — money you may need within days. FDs (6.5–7.5%) are better for money you can lock away for 3 months to 5 years. For amounts above ₹1–2 lakh that you won't need for 3+ months, FD or liquid mutual funds are more efficient than a savings account.
A classic diversified portfolio allocates 70% to equity mutual funds for long-term growth, 20% to gold as a hedge, and 10% to FD/bonds for stability. Over 15–20 years this combination historically delivers 10–12% blended CAGR while reducing volatility compared to 100% equity exposure.
The holding period is the time after you stop making new investments during which your accumulated corpus continues to compound. For example, investing ₹10,000/month for 10 years then holding for 5 more years (total 15 years) significantly boosts returns because the lump sum compounds at the same rate with no withdrawals. This models real scenarios like retiring at 55 but withdrawing at 60.
For conservative investors: AAA bonds at 8% offer the best returns, followed by FD at 6.8%, then LIC endowment at 5.5%. All three preserve capital. FD is most liquid (premature withdrawal possible), bonds are moderately liquid (tradeable on exchanges), and LIC policies have a 3-year lock-in before surrender. Bonds or FDs are generally the better conservative choice over LIC endowment.
Savings accounts (3.5%) should be avoided for any investment goal beyond an emergency fund — inflation alone erodes real returns. LIC endowment plans are better avoided for pure investment purposes given their low XIRR; a term plan plus mutual fund achieves the same goal at lower cost. Gold and bonds both have legitimate roles in a diversified portfolio.
