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Where To Invest Money - SIP vs Recurring Deposit?

07 Aug 2019 Nutan Gupta

Systematic Investment Plan (SIP) is a monthly investment in Mutual Funds while Recurring Deposit (RD) is a type of bank deposit. However, there are some basic differences between SIP and RD which one needs to understand before investing.

SIP

RD
Investment One can invest in mutual funds through SIP which can be weekly, monthly or quarterly. RD is like a fixed deposit account where one can make monthly investments.
Investment Scheme An investor has an option to decide on the equity or debt scheme, depending on his risk appetite. An investor has only one choice of the scheme - to invest in a deposit with fixed rate of return.
Returns The returns in SIP depend on the performance of the equity or debt market.
Usually, SIP gives returns of 12-15%. 		The returns in RD are fixed and are known to an investor at the time of starting RD. Usually, the returns in RD ranges between 7.1-8.5%.
Risk As the returns in SIP depend on market performance, SIP carries some risk. However, research suggests that SIP has given positive returns over a longer period of time. RD is completely risk-free as the rate of returns are fixed.
Liquidity SIP is a very liquid investment. One can close the SIP and withdraw money anytime without bearing any exit load. Though RD is liquid, pre-mature withdrawal charges may be applicable.

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    This article claims RJio was given a "Backdoor Entry" into the 4G Based Voice Routing. The peculiar aspect is without the Voice License, Rjio would have been a mere ISP. With the license, it is now a holistic communications service provider, with ability to exponentially scale the bouquet of products. The events indicate it was meticulously planned way before the auctions because the auctions were clear on the agenda: 4G for internet only.

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Where To Invest Money - SIP vs Recurring Deposit?

07 Aug 2019 Nutan Gupta

Systematic Investment Plan (SIP) is a monthly investment in Mutual Funds while Recurring Deposit (RD) is a type of bank deposit. However, there are some basic differences between SIP and RD which one needs to understand before investing.

SIP

RD
Investment One can invest in mutual funds through SIP which can be weekly, monthly or quarterly. RD is like a fixed deposit account where one can make monthly investments.
Investment Scheme An investor has an option to decide on the equity or debt scheme, depending on his risk appetite. An investor has only one choice of the scheme - to invest in a deposit with fixed rate of return.
Returns The returns in SIP depend on the performance of the equity or debt market.
Usually, SIP gives returns of 12-15%. 		The returns in RD are fixed and are known to an investor at the time of starting RD. Usually, the returns in RD ranges between 7.1-8.5%.
Risk As the returns in SIP depend on market performance, SIP carries some risk. However, research suggests that SIP has given positive returns over a longer period of time. RD is completely risk-free as the rate of returns are fixed.
Liquidity SIP is a very liquid investment. One can close the SIP and withdraw money anytime without bearing any exit load. Though RD is liquid, pre-mature withdrawal charges may be applicable.