FDs, RDs and mutual-fund SIPs describe different contribution and risk structures. A goal label alone does not select among them.
Comparison factors
- Goal date and flexibility
- Capital-loss and credit-risk exposure
- Contribution pattern
- Liquidity, lock-in and exit costs
- Tax and product terms
How to use the comparison
Deposit outcomes follow documented rates and terms; market-linked SIP outcomes depend on future prices and user-selected assumptions. Neither is assigned to a horizon by this article.
Illustrative scenario
Illustrative scenario: compare the same cash-flow plan under documented deposit terms and several hypothetical market-return paths. The market paths are not forecasts.
Common interpretation errors
- Mapping short-term goals to one product
- Using an undated deposit rate
- Treating an SIP projection as an expected outcome
Next step
Compare each structure with the goal's loss tolerance, liquidity need and contribution pattern.
Official references
This material is educational and does not provide a personal recommendation. Product rules, costs and tax treatment can change; verify the current official documents before acting.