"The biggest risk is not taking any risk...the only strategy that is guaranteed to fail is not taking risks" Mark Zuckerberg.

Most people know that fixed deposits with banks are safe. Most understand that capital is protected when money is invested in fixed deposit.

However, very few people understand that fixed deposits do not beat inflation in most cases. The money that an investor seems to get as interest is mostly taken away by inflation

By staying invested in equities over a long term, one can create far greater wealth as compared to fixed deposits. If an investor had invested Rs 50,000 in 1981 in a large cap mutual fund replicating sensex, his wealth would have been Rs 9953105 compared to just 925202 in fixed deposit.

Just try the calculator yourself for any period that you like. If stayed invested for more than 10 years, it is very likely that a large cap mutual fund will outperform fixed deposits by a distance.

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