Whether Fixed Deposit (FD) or equity is the better investment option depends entirely on you—your financial goals, risk appetite, and how long you plan to stay invested.
FDs are designed for stability and predictability, while equities aim for higher growth with higher volatility. Instead of choosing one over the other, many financial experts recommend balancing both to create a resilient investment portfolio.
Before deciding, it’s important to evaluate key personal factors such as:
- Risk appetite
- Financial goals
- Age
- Income and expenses
- Liquidity requirements
A well-diversified portfolio spreads risk and helps you stay financially comfortable across different life stages. Let’s understand both investment tools in detail.
Fixed Deposits (FD)
A fixed deposit is a fixed-income investment that is not affected by market volatility. Once you book an FD, the interest rate remains unchanged for the entire tenure, making returns easy to predict.
FDs are ideal if you:
- Have a defined financial goal
- Want capital protection
- Prefer stable and guaranteed returns
Banks, post offices, and NBFCs offer fixed deposits. While bank and post office FDs are government-backed, NBFC FDs can offer higher returns—provided you choose an institution with strong credit ratings.
Bajaj Finance Fixed Deposits combine higher interest rates with strong safety, backed by CRISIL AAA/STABLE and [ICRA] AAA (Stable) ratings. Open FD account.
Few key highlights of the FD plan offered by Bajaj Finance
- Low minimum investment amount
- Flexible tenures from 12 to 60 months
- Choice of cumulative and non-cumulative payout options
- Fully online booking and account management
- Loan against FD facility
- Competitive interest rates
- Additional interest for senior citizens
For short- to medium-term goals like education planning, capital protection, or parking surplus funds, Bajaj Finance FD offers predictable growth without market risk. Open FD.
Equity shares
Equity investments are market-linked and follow a high-risk, high-reward model. When you invest in equities, you become a partial owner of a company. If the business performs well, the stock price rises and can deliver returns significantly higher than fixed-income instruments.
However, equity investments come with volatility:
- Market corrections can erode capital
- Returns are not guaranteed
- Requires regular monitoring and research
Equities are better suited for:
- Long-term investors
- Those with higher risk tolerance
- Investors aiming to beat inflation
In conclusion, it would be unfair to say that one investment option is better than the other. The right choice depends on your financial profile and life stage.
- FDs bring stability and certainty
- Equities bring growth potential
A diversified portfolio that includes both ensures:
- Risk mitigation
- Consistent returns
- Better financial confidence
Using Bajaj Finance Fixed Deposits as the stable core of your portfolio allows you to take calculated equity risks without compromising capital safety. Check eligibility.
Equity investment amount vs fixed deposit amount
When comparing how money behaves in equity vs FDs, the differences become clearer:
Returns
- FDs generally offer steady returns, typically in a predictable range
- Equities can deliver higher returns over time, but with volatility
Liquidity
- Equity investments can be sold anytime during market hours
- FDs allow premature withdrawal, usually with a small penalty
Control over investments
- Equity investors can actively change strategies
- FD investors lock returns upfront with minimal involvement
Effect of inflation
- Inflation can reduce real FD returns over very long periods
- Equities may outperform inflation over long horizons
For investors who prefer certainty over speculation, Bajaj Finance FD provides peace of mind with assured returns and flexible tenures. Open FD.
Conclusion
Both equity and fixed deposits have an important role in wealth creation. Equities help grow money over the long term, while FDs protect capital and provide stability.
A smart investment strategy does not choose between the two—it balances both. By anchoring your portfolio with Bajaj Finance Fixed Deposits, you create a strong foundation that supports growth-oriented investments like equity, without exposing yourself to unnecessary risk.
