RD vs SIP: Which Is Better For Rs 10 Lakh Target By 2028?

SIPs and RDs are the two popular ways to build wealth over time. (Representative image. Source: Envato) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Systematic Investment Plans (SIPs) and Recurring Deposits (RDs) are two popular ways to build wealth over time. SIPs allow you to invest a fixed sum periodically into mutual fund schemes, which can achieve growth that is linked to the market.

On the other hand, RD is a savings scheme where a customer deposits a fixed amount every month, with pre-determined interest rates. If your goal is to accumulate Rs 10 lakh by 2028, then both options become relevant, each with its own set of trade-offs.

What Is A Recurring Deposit (RD)?

Recurring Deposit is one of the most conservative savings options. You deposit a fixed amount eac