Detailed Analysis
SIP and RD both involve investing a fixed amount monthly, but the similarity ends there.
SIP in equity mutual funds leverages the stock market's long-term growth. Through rupee cost averaging, you buy more units when markets are low and fewer when high. Over 10+ years, equity SIPs have historically outperformed RDs by 4-8% annually.
RD offers complete safety and predictability. You know exactly how much you'll get at maturity. It's ideal for short-term goals and for investors who can't stomach any volatility.