SIP and RD are meant for different kinds of investors.

The instalment for SIP (systematic instalment plan) type of investment product is known as premium (its fixed). SIP’s are non banking investment product. RD (recurring deposit) is a banking investment product. The rate of return on RD is (certain) in accordance with the internal policy of the bank and the monetary policy of the central bank of that country. Whereas the rate of return on SIP depends entirely on the financial market predictions (uncertain). That is why these two different types of investment products cater to two different kinds of investors. That is, those with different risk bearing capacities. SIP’s are riskier than RD’s.


Published by shreyasshamshrikant


Leave a comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: