Financial Asset Comparison Hub
Unvarnished, data-driven comparisons across Indian asset classes. Discover how Equity SIPs perform against Bank FDs, PPF, Home Loan Prepayment, Gold, and Silver post Budget 2024 taxation.
Select a Comparison Battle
8-Way Multi-Asset ToolSIP vs Fixed Deposit (FD)
Compare ₹10,000/month in Equity Mutual Funds (12% CAGR) vs Bank Recurring Fixed Deposits (7% p.a.). See returns, inflation impact, and 30% slab tax drag.
💡 Takeaway: Equity SIP generates +₹5.82 Lakhs more wealth over 10 years on ₹10k/month.
Run Detailed ComparisonSIP vs Public Provident Fund (PPF)
Compare statutory ₹1.5 Lakh yearly investments in PPF (7.1% Sovereign EEE) vs Mutual Fund Equity SIP post Budget 2024 LTCG tax.
💡 Takeaway: Even after 12.5% LTCG tax, Equity SIP yields +₹17.1 Lakhs more than PPF over 15 years.
Run Detailed ComparisonLumpsum vs SIP
Should you invest a lump sum all at once or stagger it across monthly installments? Rupee cost averaging vs market timing analysis.
💡 Takeaway: Lumpsum wins in rising markets, but SIP protects capital during corrections via Rupee Cost Averaging.
Run Detailed ComparisonPrepay Home Loan vs Invest in SIP
Should you prepay your 8.5% home loan or invest extra surplus in a 12% mutual fund SIP? Forensic mathematical decision engine.
💡 Takeaway: Equity compounding outpaces home loan interest, delivering +₹53+ Lakhs more net portfolio wealth over 20 years.
Run Detailed ComparisonSIP vs Gold (SGB & Physical)
Compare 15-year wealth compounding of ₹10,000/month in Equity SIP (12.5%) vs Sovereign Gold Bonds (11.7% effective) vs Physical Bullion (9.2%).
💡 Takeaway: Equities compound corporate profits while gold merely preserves purchasing power. Physical gold suffers 15% GST and making drag.
Run Detailed ComparisonGold vs Silver
Compare Gold (safe haven monetary asset, 14.2% volatility) vs Silver (high-beta 55% industrial metal, 27.8% volatility) over 15 years in India.
💡 Takeaway: Silver is NOT cheap gold. Over 55% industrial demand creates painful 50%+ drawdowns during economic slowdowns.
Run Detailed ComparisonIndian Asset Class Compounding Master Matrix
Historical 20-year risk-return characteristics across major Indian asset classes. Note the difference between gross returns and net real purchasing power after deducting 6% CPI inflation and applicable income taxes.
| Asset Class | Historical CAGR | Volatility | Liquidity | Tax Treatment | Real Return (Post-Tax/Inf) |
|---|---|---|---|---|---|
| Equity Mutual Funds (Nifty 50)Long-term wealth, retirement, child education (7+ years) | 12.0% – 13.5% | High (Short-term) | T+2 Days (Instant) | 12.5% LTCG above ₹1.25L | +6.0% to +7.5% |
| Sovereign Gold Bonds (SGB)Crisis hedge, currency depreciation, gold exposure without making charges | 11.5% – 12.0% | Moderate | Moderate (Exchanges) | 100% Tax-Free on maturity | +5.0% to +5.5% |
| Public Provident Fund (PPF)Guaranteed debt foundation, safe retirement corpus | 7.1% (Govt set) | Zero (Sovereign) | Low (15-Year Lock-in) | 100% Tax-Free (EEE) | +1.1% |
| Bank Fixed Deposits (FD)Emergency runway (3 to 6 months), goals under 3 years | 6.5% – 7.5% | Zero (Contractual) | High (Premature penalty) | Marginal income slab (up to 30%) | -1.1% to -1.6% (Negative) |
| Residential Real EstatePersonal primary residence (not speculative investment) | 8.0% – 9.0% | Low (Illiquid) | Extreme Low (Months/Years) | 12.5% LTCG without indexation | +1.5% to +2.5% |
| Physical Gold OrnamentsWedding consumption & cultural traditions (never pure wealth) | 9.0% – 9.5% | Moderate | Moderate (Jeweler haircuts) | 12.5% LTCG + 3% GST lost | +0.5% to +1.0% |
| Silver Bullion / ETFsShort-to-medium cyclical industrial momentum plays | 8.5% – 9.0% | Very High (27.8%) | High (ETFs) | 12.5% LTCG after 12M | +1.0% to +2.0% |
The Institutional 70-20-10 Asset Allocation Framework
Equity Mutual Fund SIPs
Large-Cap Nifty 50, Flexi-Cap, and Mid-Cap Index funds. Harnesses India's corporate earnings growth and reinvestment to deliver 12%+ CAGR to achieve long-term financial independence.
SGBs & PPF
Sovereign Gold Bonds protect against global crisis and Rupee depreciation (+2.5% coupon). PPF guarantees tax-free sovereign debt cushion to absorb equity bear markets.
Liquid Funds & FDs
Maintains 6 months of living expenses in instantly accessible bank FDs or Liquid Mutual Funds. Prevents panic liquidations of long-term equities during life emergencies.
Frequently Asked Questions: Comparing Indian Financial Assets
Common questions regarding SIP calculations, compounding formulas, and mutual fund conventions.
Historically over rolling 15+ year periods, diversified Equity Mutual Funds (tracking the Nifty 50 TRI or broad market indices) have delivered between 12.0% and 13.5% CAGR, beating all other major asset classes including Real Estate (8-9%), Gold (9.2%), and Bank FDs (7.0%). Equities compound productive corporate earnings and dividends, whereas debt and commodities do not.
Under the Indian tax code, bank FD interest is added to your income and taxed at your marginal slab rate. For an investor in the 30% slab, a 7.0% FD yields only 4.82% net. With retail Consumer Price Index (CPI) inflation averaging 6.0%, your money loses 1.18% in purchasing power every year.
A proven institutional framework for long-term investors is the 70-20-10 asset allocation: 70% in Equity Mutual Fund SIPs for primary wealth compounding, 20% in Sovereign Gold Bonds (SGB) or PPF for crisis and downside protection, and 10% in Liquid Funds or High-Interest Savings for 6 months of emergency reserves.
Budget 2024 streamlined capital gains taxation: equity mutual fund Long-Term Capital Gains (LTCG held >12 months) are taxed at 12.5% with a ₹1.25 Lakh annual tax-free exemption; Short-Term Capital Gains (STCG) are taxed at 20%. Listed gold and silver ETFs held >12 months also qualify for 12.5% LTCG. Real estate LTCG was revised to 12.5% without indexation.