RD vs SIP for Short-Term Goals: Which Wins at 12–36 Months

Short goals deserve certainty. Market risk rarely pays over such tiny windows.

Defaults That Work

• 12 to 24 months: RD or short FDs. Keep it boring.
• 24 to 36 months: High quality ultra short or low duration debt funds are acceptable if you understand category risk.

SIP Caveat

• SIP into equity for 12 to 36 months is a coin toss. Use SIPs here only for debt or hybrid categories suited to the horizon.

Tools

• FD Calculator: Compare RD and FD maturity and penalty impact.
• SIP Calculator: Model non‑equity SIPs for short goals.