POSTED BY freaksraja@gmail.com ON February 3, 2011 5:53 pm COMMENTS (3)


Just wanted to know which one is better…RD or SIP…am not considering the tax saving part (like ELSS)…my focus is on better returns…

3 replies on this article “RD or SIP”

  1. Raja Mohamed says:

    Thanks for the detailed reply Rajesh…I was looking for investing either in RD or SIP for a period of three years…your reply has definitely given some valuable inputs…I am considering HDFC’s Equity/Growth funds…

    1. Rajesh says:

      Hi Raja,
      Amongst the HDFC Funds, a few that my research team has picked up have been listed here.
      You can also go through some write up on why they are amongst the chosen ones.
      Trust this helps too…
      Happy informed investing…

  2. Rajesh says:

    Hi Raja
    If your focus is on better returns, I would like you to take a step back and think what is your objective?
    Better returns – to grow your wealth? , to fund your child’s education?
    Whatever be that objective, it will provide you with a time frame for your investment. This time frame, in turn, will define which way to go.
    I am hoping that you are at least going to give 3 to 5 years for your money to work for you.
    Let me give you a simple example –
    if your fixed or recurring deposit gives you 9% return, and the inflation in our country is 8%, the real return from your investment is only 1%! Because, everything else in your country is getting costlier by 8%!!!
    To beat inflation in the long run is essential to generate good returns from your investment.
    RD is fixed rate of interest, assured, negligible risk. Real return not so great!
    SIP is variable performance, risk prone and not assured. But, if you believe in the markets, want to give time for your money to grow, and you are willing to take risk, SIP is the way to go!
    Trust you find the above information useful.
    If you need suggestions of what fund to SIP into, feel free to ask.
    Happy informed investing….

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