Conservative
5–8%
a year, planning range
- Bank FDs, RDs, liquid and short debt funds, much of PPF
- Lower swings, lower long-term growth
- After ~6% inflation, real growth can be thin
- Fits money you may need in 1–5 years
Guide · Returns
How much is the return on investment, generally, in three categories?
There is no single “today’s ROI”. What you can reasonably plan for depends on risk. In India, people usually group expected long-term returns into conservative, moderate and growth. These are planning ranges, not offers from a bank or a fund house.
Returns below are round, pre-tax illustrations for education. Real years can be far higher or negative. Costs, tax and inflation all reduce what you keep. Past performance does not guarantee future results.
Moderate
8–11%
a year, planning range
- Hybrid funds, balanced mixes of equity and debt
- Some down years are still likely
- A middle path, not a promise of “best of both”
- Fits medium horizons, roughly 5–10 years
Growth
12–15%
a year, planning range
- Diversified Indian equity (index, flexi-cap, similar)
- Long-run market averages are often cited near this band
- Single years can be −20% or +40%
- Fits 7–10+ year goals you will not raid early
What ₹10,000 a month for 20 years looks like
You would invest ₹24 lakh in total. Using the same SIP math as the investment calculator (monthly compounding, no tax or fees):
Conservative · 7% a year₹52.4 lakhGrowth adds about ₹28.4 lakh
Moderate · 10% a year₹76.6 lakhGrowth adds about ₹52.6 lakh
Growth · 12% a year₹99.9 lakhGrowth adds about ₹75.9 lakh
At 14% — the optimistic end of the growth band — the same SIP illustrates about ₹1.32 crore. That extra is not “free money”; it is compensation for larger drawdowns along the way. If you need the corpus on a fixed date, plan with a lower rate so you are not forced to sell in a bad year.
Why “generally” is a dangerous word
Headline returns mix very different products. A 7% FD and a 12% equity illustration are not competing quotes for the same risk. Equity has historically rewarded long holding periods in India, and it has also had multi-year stretches that felt like the plan was broken.
Inflation sits underneath every figure. If prices rise 6% and your deposit pays 7%, your purchasing power barely moves. Check that with the inflation calculator before celebrating a “safe” rate.
Tax and expenses also eat the number on the screen. Equity funds, debt funds, FDs and gold are taxed differently, and fund expense ratios compound against you. Calculators on this site do not subtract those unless a tool says so.
A practical way to use the three bands
- Split goals by date, then assign a band — do not pick 15% for money you need next Diwali.
- Run the calculator at the bottom of the band as well as the middle.
- If someone quotes 20–30% as “normal”, treat it as marketing, not a category.