Stop relying on guesswork. To build real wealth, you must beat inflation. But which asset class wins the marathon: the safety of Fixed Deposits, the stability of Gold, or the compounding power of Equity? Our Gold vs. FD vs. Equity Calculator (Investment Return Comparator, Asset Return Comparator) uses historical data to visualize exactly how your investment grows over time. Compare returns instantly and make data-driven decisions for a smarter financial future.
💰 Investment Return Comparator
Fixed Deposit (FD)
Gold
Equity (Stocks/MF)
Every Indian investor faces the same dilemma: Should you stick to the safety of Fixed Deposits (FD), rely on the traditional security of Gold, or brave the volatility of Equity markets for higher wealth creation?
The answer isn’t simple—it depends on your timeline, risk appetite, and financial goals. However, history gives us clear data. While FDs offer peace of mind, they often struggle to beat inflation. Gold acts as a perfect hedge against crises, but Equity has consistently emerged as the champion of long-term wealth compounding.
Use our interactive return calculator above to visualize how a small difference in interest rates can impact your wealth over 10, 20, or 30 years. Below, we break down the pros, cons, and historical performance of these three asset classes.
The “Big Three” of Indian Investing
1. Fixed Deposits (The Safety Net)
Bank FDs are the bedrock of Indian savings. They are low-risk and offer guaranteed returns. However, in a rising inflation economy, the real return (Interest Rate minus Inflation) on FDs can often be close to zero or even negative. Taxes on FD interest further reduce your actual gains.
2. Gold (The Crisis Hedge)
Gold is more than just jewelry; it’s a store of value. Historically, gold performs exceptionally well during economic downturns, wars, or high inflation periods. However, physical gold comes with making charges and storage risks, while Digital Gold or Sovereign Gold Bonds (SGBs) offer more efficient ways to invest.
3. Equity (The Wealth Creator)
Equity refers to investing in the stock market, either directly or through Mutual Funds (SIPs). While short-term volatility is high, equities have historically delivered the highest inflation-adjusted returns (12–15% CAGR) over periods exceeding 7-10 years.
At a Glance: Gold vs. FD vs. Equity
| Feature | Fixed Deposit (FD) | Gold | Equity (Mutual Funds) |
|---|---|---|---|
| Avg. Return (10Y) | 6% – 7.5% | 9% – 11% | 12% – 15% |
| Risk Level | Very Low | Moderate | High (Short Term) |
| Liquidity | High (Penalty applies) | High | High (T+1 days) |
| Best For | Emergency Fund / < 3 Yrs | Hedging Portfolio | Retirement / > 5 Yrs |
The Silent Killer: Inflation
Why does the calculator above show such a massive difference between FD and Equity over 20 years? The power of compounding works best with higher rates.
If inflation is at 6%, an FD giving you 7% is only growing your wealth by **1% in real terms**. Conversely, an Equity fund giving 14% is growing your wealth by **8% in real terms**. Over two decades, this difference doesn’t just double your money; it can quadruple it.
Verdict: Where Should You Invest?
Smart investing isn’t about choosing one winner; it’s about Asset Allocation.
- Choose FDs for your emergency fund (6 months of expenses) or goals that are less than 3 years away (e.g., a down payment for a car).
- Allocate to Gold (approx. 5-10% of your portfolio) to stabilize your returns during stock market crashes.
- Choose Equity for long-term goals like retirement, children’s education, or wealth creation spanning 7+ years.
Note: Use the calculator at the top of this page to adjust the “Expected Return Rate” based on current market trends to see how your portfolio might perform.
