Two of the popular investment options in India include fixed deposits (FDs) and Systematic Investment Plans (SIPs) in mutual funds. While FDs have traditionally been preferred for the safety and guaranteed returns they offer, mutual funds have become highly popular options due to their ability to generate high returns and beat inflation.Both are important options, meant for different types of investors. When it comes to becoming a crorepati, you must weigh the pros and cons of both to decide which is best for you.Mutual Fund Investment: Here’s How Rs 500 Per Month SIP Can Grow In Five YearsFDs vs Mutual Fund SIPsOne of the things which makes a fixed deposit attractive is that it carries almost no risk. You simply need to deposit a lump sum with a bank or financial institution for a fixed tenure. It will earn you a guaranteed interest rate. So, the returns from an FD are absolutely predictable.But the problem with FDs is that they offer lower returns, especially if you take inflation into account. The income that you generate will be significantly reduced by inflation. Fixed deposits typically offer interest rates between 6% and 7% per annum for tenures of five to ten years.On the other hand, mutual funds typically offer annual returns of 12% to 15% over the long term. It is important to remember that SIPs are vulnerable to market risks. If you generate good returns from a mutual fund investment, you can beat inflation and generate significantly higher returns compared to an FD.Rs 10,000 SIP vs Rs 10 lakh FD: Fastest Way To Become A Crorepati?It is crucial to remember that you need a long investment horizon to build Rs 1 crore from an investment in either FDs or mutual funds.FD CalculationTenure: 35 yearsTotal Investment: Rs 10 lakhReturns: 7% per annum (assumption)Interest Earned: Rs 96.76 lakhFinal corpus: Rs 1.06 croreMutual Fund CalculationTenure: 21 yearsMonthly SIP Amount: Rs 10,000Returns: 12% per annum (assumption)Total Investment: Rs 25,20,000Interest Earned: Rs 79,10,067Final corpus: Rs 1.04 croreAs the above calculation illustrates, you can become a crorepati much faster with SIPs rather than investing in FDs. However, SIPs come with market risks. They are ideal for those with a long investment horizon and some degree of risk appetite.While, FDs are meant for those who seek stability and safe returns. You should carefully evaluate your options and priorities to decide which suits you the best.Latest FD Interest Rates July 2025: Which Banks Are Offering Top Returns - Check List. Read more on Personal Finance by NDTV Profit.