How sip is better than bank recurring deposite?

Question

How sip is better than bank recurring deposite?

Answer 1

Is the current market is safe to invest as stock exchange is falling like anything. Also is the growth story is in decline with rising inflation. Then how to choose the investment plan ? ...Investing in MF or FD ...

My suggestion is if you are investing in small amount & for long term then go for SIP (preferably in ELSS schemes to cover your tax exception limit)

FD for short term (1 yr) for huge money is good option.

What others say ???

Answer 2

Mahua Zinta has explained SIP correctly but has given it a low rating compared to FD. According to past history only equity has given very good returns as compared to any other investment option in the long run. It is true that the market is in doldrum today, but 3 years from now (according to past statistics) they will definitely look up. That is why SIP is a good option as your purchase price gets averaged and you may get better returns than FD in the long term.

Answer 3

SIP is a process of consecutive  investment in capital market through mutual fund.This sort of investment plan.to some extent, reduces the risk of market fluctuation since it is invested in stretched time but over all risk remains in full force.As the inherent nature of capital market your investment may or may not grow and even it can reach far below your initial investment.But recurring deposit in any Bank assures you a fixed sum at its maturity. Though it is not high enough but it is fully risk free.