A honest, side-by-side comparison to help you decide where to put your money in 2026
| Parameter | ๐ฆ Fixed Deposit (FD) | ๐ IPO Investment |
|---|---|---|
| Returns | 6.5%โ9% p.a. (guaranteed) Predictable | Variable โ listing gain of -20% to +100% High Potential |
| Risk | Very Low โ DICGC insured up to โน5L Safer | Moderate โ allotment not guaranteed, listing may be below issue price |
| Minimum Investment | โน1,000 (varies by bank) | ~โน14,000โโน15,000 (1 lot at cut-off price) FD wins |
| Liquidity | Moderate โ premature withdrawal allowed with 0.5โ1% penalty | High โ shares can be sold on listing day IPO wins |
| Investment Horizon | 7 days to 10 years (flexible) | 7โ14 days for listing gain; longer for portfolio building |
| Tax Treatment | Interest taxed as per income slab (10โ30%+). TDS at 10% if interest > โน40,000/year. | STCG at 20% if sold within 1 year. LTCG at 12.5% above โน1.25L if held 1+ years. IPO wins |
| Account Required | Bank account only | Demat + Trading account + UPI/ASBA |
| Capital Protection | 100% (up to โน5L DICGC insured) FD wins | Not guaranteed โ listed price may fall below issue price |
| Effort Required | Very Low โ set and forget FD wins | Moderate โ research, apply, track GMP, decide when to sell |
| Allotment Guarantee | 100% โ funds go in immediately | Not guaranteed โ lottery-based for retail investors FD wins |
You don't have to choose just one. Most successful investors use FDs for capital protection and IPOs for growth. A simple approach:
* Allocation depends on age, risk appetite, and financial goals. Consult a SEBI-registered advisor.