FD vs mutual fund
Same money, same years, taxed two different ways.
Fixed deposit, 15 years
₹20,49,426
Gain ₹10,49,426 · 4.9% after tax, every year
Mutual fund, taxed yearly
₹24,39,302
Gain ₹14,39,302 · 6.125% after tax, every year
Held to the end, after tax
₹25,39,153
Gain ₹15,39,153 after a one-time 12.5% tax on the gain
Extra earned over the FD
₹4,89,726
23.9% more, after tax on both sides
Saved by paying 12.5% once, not yearly
₹99,851
the benefit of paying the same tax once, at the end
Saved compared with yearly tax at your 30% slab
₹7,09,605
the benefit of paying tax at the end instead of every year, as with an FD
Staying invested wins here
Even after paying 12.5% once on the whole gain, staying invested comes out ₹99,851 ahead of being taxed 6.125% every year.
Read this with the right caveats
Both tracks assume a steady after-tax return for the full term, which real markets and interest rates don't guarantee. An FD's rate can change on renewal, and a fund's after-tax result depends on when the gains are taken and the tax rules that year. Treat this as a comparison of two steady assumptions, not a forecast.