Guides
Every RupeeVeda explainer in one place.
CAGR vs XIRR Explained
CAGR measures the annualised growth of a single investment between two dates. XIRR extends this to multiple cash flows on different dates, making it the right tool for SIPs.
Read guide bankingCumulative vs Non-Cumulative FD
A cumulative FD reinvests interest until maturity for a higher final value; a non-cumulative FD pays interest out periodically for regular income.
Read guide bankingFD vs PPF: A Practical Comparison
An FD is a flexible bank deposit for any term; PPF is a long-tenure government savings scheme with annual compounding. They serve different horizons and purposes.
Read guide loansFixed vs Floating Interest Rates
A fixed rate keeps your EMI constant regardless of market movements; a floating rate moves with a benchmark, so your EMI or tenure can change over time.
Read guide retirementHow Compound Interest Works
Compound interest is interest earned on both your principal and previously earned interest. Over time, and with more frequent compounding, it grows money faster than simple interest.
Read guide loansHow Is EMI Calculated?
An EMI is calculated with a standard formula from the loan amount, the monthly interest rate, and the number of months. Each EMI pays some interest and some principal.
Read guide taxHow Is Interest on FDs and RDs Taxed?
Interest earned on fixed deposits and recurring deposits is fully taxable as 'income from other sources' at your slab rate. Banks may deduct TDS above thresholds, but you owe tax on the interest either way. The post-tax return is what to compare against alternatives.
Read guide bankingHow Is FD Interest Calculated?
FD interest is calculated using compound interest. The maturity value depends on the principal, the interest rate, the term, and how often interest is compounded.
Read guide taxHow Income Tax Calculation Works in India
Income tax in India is computed in stages: total your income under different heads, subtract eligible deductions and exemptions, apply the slab structure of your chosen regime, then add cess and adjust for tax already paid. Knowing the structure matters more than memorising the numbers, which change with each Budget.
Read guide loansHow Loan Interest Works
Most loans charge interest on the reducing outstanding balance, so interest falls as you repay. A flat rate charges on the original amount throughout and is effectively costlier.
Read guide loansHow Loan Prepayment Works
Prepaying a loan reduces the outstanding principal, which lowers future interest. You can usually choose to shorten the tenure or reduce the EMI — shortening tenure saves the most interest.
Read guide taxHow Are Mutual Fund Gains Taxed?
Profit on redeeming mutual fund units is a capital gain. How it is taxed depends on the fund's classification (equity-oriented or not), how long each unit was held, and the rules in force in the year you redeem. This guide explains the moving parts without quoting rates, because they change.
Read guide investingHow Does a SIP Work?
Each SIP instalment buys mutual fund units at that day's price. Over time you accumulate units at an averaged cost, and staying invested lets returns compound.
Read guide investingHow to Calculate SIP Returns
SIP returns are estimated with the future value of an annuity formula. For real, uneven cash flows, XIRR gives the annualised return that accounts for the timing of each instalment.
Read guide retirementPPF vs FD
Both PPF and FDs prioritise stability, but PPF is a long-tenure, government-set scheme with annual compounding, while FDs are flexible bank deposits with bank-set rates.
Read guide retirementPPF vs SIP
PPF offers government-backed, fixed compounding with low volatility; a SIP invests in market-linked funds with variable returns. Many investors use both for different goals.
Read guide investingSIP vs FD: Which Fits Your Goal?
A SIP invests in market-linked mutual funds with variable returns and risk; a fixed deposit offers a contracted interest rate with high capital stability. Neither is universally better.
Read guide investingSIP vs Lumpsum Investing
A SIP spreads investment across time to average out entry prices, while a lumpsum invests everything at once. Each suits different situations and cash-flow realities.
Read guide investingWhat Is a Step-Up SIP?
A step-up SIP increases your monthly investment by a set percentage or amount each year, usually to match rising income, which can meaningfully grow the final corpus.
Read guide bankingWhat Is a Fixed Deposit?
A fixed deposit is a deposit placed with a bank for a fixed term at an interest rate agreed at the time of booking, offering predictable returns and high capital stability.
Read guide taxWhat Is GST (Goods and Services Tax)?
GST is a single indirect tax levied on the supply of goods and services across India, replacing many earlier central and state taxes. It is charged as a percentage of the value at each stage, with businesses claiming credit for tax already paid on inputs, so the final consumer bears the tax.
Read guide retirementWhat Is the Public Provident Fund (PPF)?
PPF is a long-term, government-backed savings scheme where you contribute each year and earn annually compounded interest at a rate set by the government. Its rules are statutory and change over time.
Read guide investingWhat Is a SIP (Systematic Investment Plan)?
A SIP, or Systematic Investment Plan, is a method of investing a fixed amount into a mutual fund at regular intervals — usually monthly — instead of investing a large sum at once.
Read guide taxWhat Is TDS (Tax Deducted at Source)?
Tax Deducted at Source (TDS) is a mechanism where the payer of certain incomes — salary, bank interest, rent, professional fees — deducts tax before paying you and deposits it with the government on your behalf. It is a prepayment, not a separate tax.
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