FD + Mutual Fund Growth Calculator
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FD + Mutual Fund Growth Calculator

Maximize returns by investing FD interest in Mutual Funds

Lump sum amount invested in FD
Current bank FD rates: ~6.5%-7.5%
Typically 1-10 years
Equity funds: ~10-15%, Debt funds: ~6-9%
FD interest is taxable as per income slab

How This Strategy Works

This hybrid investment approach combines the safety of Fixed Deposits (FDs) with the growth potential of Mutual Funds (MFs):

  1. You invest a lump sum amount in an FD (safe, guaranteed returns).
  2. The interest earned from the FD is systematically invested in Mutual Funds (higher growth potential).
  3. Over time, the FD principal remains secure while the MF investments grow at a higher rate.
  4. This strategy balances safety + growth better than pure FD or pure MF investments.

Current Market Rates (2024)

Investment Expected Returns Risk Level
Bank FDs 6.5% – 7.5% p.a. Low (Guaranteed)
Large Cap Mutual Funds 10% – 12% p.a. Moderate
Flexi Cap Mutual Funds 12% – 15% p.a. Moderately High
Small Cap Mutual Funds 14% – 18% p.a. High

Benefits of This Strategy

  • Safety: FD principal remains protected.
  • Growth: MF investments benefit from compounding.
  • Tax Efficiency: LTCG on equity funds taxed at 10% (after ₹1 lakh exemption).
  • Flexibility: Choose FD tenure & MF type based on risk appetite.
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