SIP vs RD: SIP or Systematic Investment Plan is a systematic approach to investing, wherein, investors allocate a small, pre-determined amount of money to a specific mutual fund scheme at regular intervals. In recurring deposits, investors can make regular deposits and potentially earn returns. SIPs and RDs may be suitable for investors looking to systematically save their money and potentially earn returns on their investments. The key difference between SIP and RD is their risk level and potential for wealth creation. SIPs can be started in a variety of different mutual funds, including tax saving schemes. Investors can choose between various schemes such as debt, equity, hybrid, etc., with varying levels of risk. Contrarily, RDs are generally short-term and low-risk and may be suitable for senior citizens, salaried individuals, or for emergency funds. It gives a safe fixed expected return based on the interest rate chosen. It also has 10% tax deductions on 10,000 rupees income per annum.
SIP vs RD in India: Which is Better?
