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Home›Gold vs SIP vs FD vs PPF

Gold vs SIP vs FD vs PPF

Compare investment returns side-by-side. Put your monthly amount and see which option builds more wealth over time.

Investing ₹10,000/month for 10 years

Total invested: ₹12,00,000

🏆 Winner: 📈 Mutual Fund (SIP)

₹24,66,807

Profit: ₹12,66,807 (106% total return)

InvestmentReturn RateFinal ValueProfitTax
📈 Mutual Fund (SIP)WINNER13%/yr₹24,66,807+₹12,66,80712.5% LTCG
🥇 Gold12%/yr₹23,23,391+₹11,23,39112.5% LTCG
🏛️ PPF7.1%/yr₹17,84,099+₹5,84,099Tax-free
🏦 Fixed Deposit7%/yr₹17,40,945+₹5,40,945As per slab

📊 Wealth Growth Over 10 Years

💡 Key Takeaways

Gold is best as a 10-15% allocation— it protects during market crashes but doesn't compound like equity or PPF.

SIP has the highest volatility but best long-term potential. A ₹10,000 SIP for 10 years in Nifty 50 has never lost money over any 10-year period.

PPF is tax-free under EEE — exempt on deposit (80C), exempt on interest, exempt on maturity. Best guaranteed option.

FD interest is fully taxable as per your income slab. After 30% tax, 7% FD effectively gives ~4.9% — below inflation.

🎯 Suggested Allocation for ₹10,000/month

60%

SIP

₹6,000/mo

15%

PPF

₹1,500/mo

15%

Gold

₹1,500/mo

10%

FD

₹1,000/mo

This is a general guideline for a 25-35 year old. Adjust based on your risk tolerance and goals.

💡 Related Tools

CompareCalculate Lumpsum in FDTax-FreeCheck PPF ReturnsSave TaxPlan Your Tax SavingsMathCalculate Percentage Gain

Frequently Asked Questions

Which is a better investment — gold or mutual funds?▼
Over the long term (10+ years), equity mutual funds have historically outperformed gold in India. However, gold provides stability during market crashes. A balanced portfolio includes both — typically 70-80% equity + 10-15% gold + rest in FD/PPF.
Is FD better than gold?▼
FDs provide guaranteed returns but typically lose to inflation after tax. Gold has no guaranteed returns but has historically beaten inflation over 10+ year periods. Gold is also more liquid — you can sell anytime at market rate.
What is the safest investment among these?▼
PPF is the safest — government-backed, tax-free, and guaranteed 7.1% returns. FD is next (insured up to ₹5 lakh by DICGC). Gold carries market risk but has never gone to zero. Equity SIP has highest risk but highest potential returns.
Should I invest in Sovereign Gold Bonds instead of physical gold?▼
Yes! SGBs give you gold's price appreciation PLUS 2.5% annual interest. No making charges, no storage cost, and if held till maturity (8 years), capital gains are completely tax-free. The only downside: limited liquidity before maturity.
How much should I allocate to each investment?▼
A common rule: Age in debt (FD/PPF), rest in equity and gold. At age 30: 30% in FD/PPF, 60% in SIP, 10% in gold. At age 50: 50% in FD/PPF, 35% in SIP, 15% in gold. Adjust based on your risk tolerance.
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