Analysis of Risk and Return in Mutual Funds vs. Fixed Deposits

Abstract

This research summarizes a 10-year comparative analysis (2014–2024) of mutual funds and fixed deposits (FDs) in India. Using secondary data from AMFI, RBI, and leading banks, we assessed the performance of five mutual funds and benchmarked them against FD interest rates. Metrics such as CAGR, Sharpe Ratio, Beta, and Standard Deviation were used to evaluate return and risk. Results show that while FDs provide safety and fixed returns, mutual funds—especially equity-oriented ones—have delivered superior long-term returns with moderate to high volatility. The study concludes that investment decisions should align with individual financial goals and risk appetite.