Fixed Deposit vs Stock Market: Where Your ₹5 Lakh Actually Grows

Fixed deposits feel safe. Your bank promises six to seven percent returns, guaranteed. You deposit five lakh rupees and sleep peacefully.

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But here's the trap: inflation in India runs at five to five point five percent yearly. After tax, your real gain is barely one percent.

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Stock market diversification through index funds averages twelve to fourteen percent annually over ten years. That five lakh becomes twenty-two lakh.

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Your FD five lakh grows to only eight lakh in the same ten years after inflation. That's a fourteen lakh rupee difference.

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FDs are safety nets, but stocks are wealth builders. For long-term goals beyond five years, one percent real returns can't compete.

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