FDs vs equities: How rolling returns debunk short-term performance myths

Many investors resist rolling return analysis, preferring specific-date comparisons, which are often skewed to favour certain narratives

“Financial planning experts often argue that equity markets outperform fixed deposits over the long term. However, I can demonstrate that a 10-year investment in fixed deposits has delivered higher returns than equity markets,” declared my friend Mitesh. An experienced professional, he often challenges investment philosophies.

 

Mitesh argued that liquid funds were equivalent to bank FDs, highlighting that from March 23, 2010, to March 23, 2020, they delivered 8 per cent per annum return, outperforming the 5 per cent per annum return of the equity markets (Nifty50 Total Return Index [TRI]) during the same period. To him, this proved that FDs