Watch how an equity rate compounds vs a fixed deposit rate, every single month
Both lines compound monthly. The orange MF line pulls away from the grey FD line — slowly at first, then sharply. That's the cost of caution.
| Month | MF Value | FD Value | Loss This Month | Cum Loss |
|---|
If you spread the total gap of ₹0 evenly over 60 months, you're "losing" ₹0 per month by holding an FD instead of an equity fund.
But the real story is the curve: month 1 the gap is small, month 60 it's huge. That's exponential — the spread doesn't add, it multiplies. A 9% gap doesn't mean you "lose" 9%. It means MF ends at —× and FD at —×, of the same principal.