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SIP or FD- Let's know which is better for saving in SIP and FD, in which did you invest


If you are a working person, then you must be saving a part of your earnings, which will be useful for your future. There are many options available for saving in the market, but most of the investments are made in SIP and FD, it is important to know which of the two is right for you and which gives returns-

Mutual Fund SIP

Mutual Fund SIP has gained a lot of popularity among young investors. Unlike direct stock market investments, where buying and selling shares can be highly unpredictable and risky, SIPs offer a more managed approach.

When you invest in mutual funds through SIP, your money is handed over to market experts who diversify your investment across different companies. However, with SIP, potential losses from one company can be compensated by the profit in another company, reducing the overall risk.

Fixed Deposit (FD)

On the other hand, fixed deposits (FD) are considered one of the safest savings options. In an FD, you deposit a lump sum amount in the bank for a fixed period, which is insulated from market volatility. Although interest rates may vary between banks, FDs offer guaranteed returns, making them a stress-free investment option.

Comparison and Decision-Making

Risk and Returns: SIPs, being market-linked, come with higher risk but also offer the potential for higher returns. FDs are risk-free but generally offer lower returns.

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