Equity vs FD, gold and Post Office RD
These are not interchangeable products. Each can play a different role in a well-structured financial plan, and headline returns never tell the whole story.
Equity offers long-term growth potential but can fluctuate sharply. The Nifty 50 TRI figure below includes dividends and is historical—not a forecast for any fund or portfolio.
FDs prioritise predictability. Their rates vary by bank, tenure and depositor category, while interest may be taxable. Deposit terms and premature-withdrawal rules also matter.
Post Office RD is a monthly-deposit product, so its return cannot be compared with a one-time ₹1 lakh investment without assuming a deposit schedule.
Gold can diversify a portfolio and has risen strongly in the recent comparison period, but it produces no business earnings and its price can fall. Purchase form, taxes, spreads and storage can change the investor's actual return.
Numbers in context
Published return and rate snapshot
The periods and product structures differ, so this is not a like-for-like ranking. Past ROI is not a forecast. Figures exclude tax, fees, spreads and premature-withdrawal effects.
| Asset / measure | Published figure | ₹1 lakh 5-year illustration |
|---|---|---|
| Nifty 50 Total Return Index | 10.41% 5-year CAGR to 31 Jul 2026 | About ₹1.64L if that historical CAGR repeated |
| Gold price | Approx. 23.9% annualised, Jul 2021–Jun 2026 | About ₹2.92L based on the two price snapshots |
| Bank term deposit over 1 year | Current range: 6.00%–6.75% | About ₹1.34L–₹1.39L pre-tax if held at that rate |
| Post Office 5-year RD | Current rate: 6.7% p.a., quarterly compounded | Monthly-deposit product; no single lump-sum ROI |