FD vs STOCK MARKET

 Investment Comparison: The video compares Fixed Deposit (FD) investments with Stock Market investments, using an Excel sheet for calculations.

1. FD Interest: The speaker highlights how Fixed Deposits (FDs) provide a steady interest, but the return is limited, typically offering around 7% annually.
2. Stock Market Returns: Stock market investments, especially mutual funds, have the potential to offer higher returns (10% to 15% or more) compared to FDs.
3. Taxation: FD interest is taxed at the individual's income tax bracket (up to 30%), whereas stock market returns (capital gains) have different taxation rules, such as lower tax rates on long-term gains.
4. Investment Duration: The speaker emphasizes that long-term investments (20 to 40 years) in stocks can result in substantial wealth creation.
5. Compound Interest: The power of compound interest is discussed, showing how stock market investments can grow significantly over time compared to FD returns.
6. Example Calculations: Sanket uses examples, showing how a ₹1 lakh investment can grow over 20 years, especially with stock market returns (around ₹34 lakh vs ₹17 lakh in FD).
7. Risk and Reward: The stock market involves more risk but also higher rewards, and long-term investing in companies like Reliance, Tata, and Birla can generate significant returns.
8. Dividend Income: By investing in stocks, one can also earn dividend income. The example shows how dividends can provide an additional source of passive income.
9. Advice on Investment Strategy: The speaker advises to start investing in stocks for long-term gains, with a focus on sustainable growth and reinvestment. He suggests that FD might be safe but less profitable in the long run.

These points summarize the key messages regarding investment strategies, returns, taxation, and the benefits of stock market investments over FDs.