[28] A COMPARATIVE ANALYSIS OF RETURN PERFORMANCE BETWEEN FIXED DEPOSITS AND EQUITY MUTUAL FUNDS FROM 2015 TO 2024 IN INDIA

How to Cite the Article: Saurabh Kotal & CA Surhud Marathe (2026). A Comparative Analysis of Return Performance between Fixed Deposits and Equity Mutual Funds from 2015 to 2024 in India. International Journal of Multidisciplinary Research & Reviews. 5(4). 341-353. https://doi.org/10.56815/ijmrr.v5i4.2026.341-353

Abstract

In this paper, we compare two prevalent investment avenues available to
retail investors in India — bank fixed deposits (FDs) and equity mutual
funds (EMFs). This study looks at the return, risk, inflation-adjusted
performance, liquidity, taxation, and long-term wealth creation of the two
alternatives in respect to the period 2015 to 2024. The analysis involves
secondary data from AMFI, RBI, SEBI, MoSPI, and prominent commercial
banks. Performance is measured using descriptive statistics including
compound annual growth rate (CAGR), standard deviation, coefficient of
variation, Sharpe ratio, and a wealth index simulation. The results indicate
that the fixed deposits appeal to more conservative investors because of the
consistency, predictability, and capital protection they provide. However,
over the longer term, equity mutual funds had vastly better nominal as well
as real returns and performed better for post-tax wealth creation. The paper concludes that the decision between FDs and EMFs should depend on the
investor’s age, risk tolerance, investment horizon, liquidity needs, and tax
position, not the amount of return.