Compound Interest Comparison Tool
Compare how your wealth grows side-by-side across Equity Mutual Funds, Index Funds, Fixed Deposits, and standard Savings accounts over time.
18,00,000
50,45,760
41,79,243
30,51,890
23,69,752
Compounding Growth Curve Projections
Frequently Asked Questions
Why does a small difference in return rate matter for long-term compounding?
Because compounding growth is exponential rather than linear, returns accumulate on top of past returns. Over 15 or 20 years, a difference of just 3.5% (e.g. 6.5% in a Fixed Deposit vs. 10% in an Index Fund) can result in a final corpus that is more than double the size.
Is equity compounding guaranteed?
No. Equity mutual fund returns are market-linked and volatile. While long-term Indian market history yields a CAGR of 10% to 12% over 10+ years, short-term annual returns will fluctuate and can occasionally be negative. Fixed Deposits yield guaranteed interest rates but often fail to outpace inflation.
Why Equity Beats FDs in 20 Years: The Chart That Ends the Debate
Suresh's father swears by Fixed Deposits. "Safe, guaranteed, no tension," he says, as he has for the past 30 years. What he doesn't realise is that his FD at 7% post-tax returns has grown his ₹10 lakh investment to ₹38 lakhs over 20 years. Suresh's 20-year equity index fund investment at 13% has turned the same amount into ₹1.35 crore. The gap is ₹97 lakhs.
The difference isn't risk. It's time horizon and asset class understanding. FDs are outstanding for short-term goals (1–3 years) where capital preservation matters. Equity is outstanding for long-term goals (7+ years) where compounding has time to recover from volatility and generate real wealth.
The compound growth curve comparison tool lets you visualise this graphically. The magic happens between years 15 and 25, where the equity curve begins to curve sharply upward — the exponential phase. In the early years, the lines look similar. But patience changes everything.
One key insight: don't compare asset classes at the wrong time horizons. Criticising equity for being volatile over 3 years, or criticising FDs for low returns over 20 years — both are category errors. Right tool, right timeline.
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