SIP vs FD: Which is Better?

 Both SIP and Fixed Deposit (FD) are popular ways to save money, but they work differently.

FeatureSIPFD
ReturnsMarket-linked, potentially higherFixed, lower
RiskMediumLow
LiquidityModerateLow before maturity
GrowthLong-term wealthSafe but slower

Conclusion

  • SIP: Best for long-term growth, higher returns, moderate risk

  • FD: Best for short-term safety, lower returns, minimal risk

Beginners should use SIP for wealth creation and FD for emergency funds.

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