Mutual funds vs Sanchayapatra, DPS and FDR
The safe options give a fixed, guaranteed return; mutual funds are market-linked, with higher potential and real risk. Here is how they compare, and you can line them up side by side on the calculator.
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The fixed-return options
Most Bangladeshis know the fixed-return choices well. Sanchayapatra (savings certificates) pay a government-set rate over a fixed term. A DPS (Deposit Pension Scheme) builds savings through fixed monthly deposits at a set rate. An FDR (Fixed Deposit Receipt) locks a lump sum for a term at an agreed rate. All three protect your capital and give a predictable return, but that return is capped and can be eroded by inflation.
Two more lines on the ReturnKoto? chart are economic yardsticks rather than safe places to park money. Inflation shows how fast prices are rising, so you can judge whether a return actually grew your purchasing power. Gold is included as a familiar long-run store of value, but its price swings from year to year, so it neither protects your capital nor pays a predictable return. Read both as benchmarks, not as fixed-return options.
How mutual funds differ
An open-end mutual fund pools money from many investors and a professional manager invests it in a portfolio of shares, bonds and other assets. There is no fixed, guaranteed rate: your return depends on how the portfolio performs. That means more risk than a fixed deposit, but also the potential for higher long-run returns. New to the idea? Start with the plain-language guide.
Returns
Fixed options give you the rate on the label. Mutual fund returns vary year to year and are never guaranteed. The honest way to weigh them is on real history: ReturnKoto? puts each fund's actual total return next to Sanchayapatra, DPS, FDR, gold and inflation on one chart, for the period you choose. See the comparison for yourself.
Risk
Sanchayapatra, DPS and FDR carry very low risk and return your capital with interest. Mutual funds can fall as well as rise, and equity-leaning funds move more than income funds. Risk is the price of the higher potential return, and a longer horizon plus spreading money across funds are the usual ways to manage it.
Liquidity
Open-end mutual fund units are redeemable at NAV on a regular basis, often weekly, though some funds apply a small early-exit charge in the first year or two. Sanchayapatra and FDR are designed to be held to term, with reduced returns or penalties for early withdrawal, and a DPS expects regular deposits over its full term.
Tax
Both savings instruments and mutual funds interact with tax in their own ways. A notable recent change: the 2026-27 budget removed the old ৳5 lakh ceiling on how much of a mutual fund investment could earn the yearly investment tax rebate, making funds more tax-efficient than before. See the tax section and confirm current rules with the NBR.
Which is right for you?
They are different tools for different goals. If you need certainty and capital protection for a near-term need, the fixed options shine. If you are investing for the long run and can ride out the ups and downs, a mutual fund's higher potential return may suit you better. Many people use both. The point of ReturnKoto? is to let you see the real trade-off, not guess at it.
Common questions
Are mutual funds better than Sanchayapatra or FDR?
Neither is universally better. Sanchayapatra and FDR give a fixed, guaranteed return with very low risk; mutual funds are market-linked, with higher potential return and real risk. ReturnKoto? lets you compare each fund's real history against the safe options so you can decide for your own goal and horizon.
Do mutual funds give higher returns than a DPS?
They can, over the long run, but it is not guaranteed. A DPS pays a fixed rate, while a mutual fund's return varies with the market. Compare the actual numbers on the ReturnKoto? calculator before deciding.
Which is safer, a mutual fund or a fixed deposit?
A fixed deposit is safer in the sense that your capital and rate are fixed. A mutual fund can rise or fall in value. The trade-off is that the safer option usually returns less, and inflation can eat into a fixed return.
Can I withdraw from a mutual fund any time?
Open-end fund units are redeemable at net asset value on a regular basis, often weekly. Some funds apply a small early-exit charge if you redeem or cancel a SIP very early. Sanchayapatra and FDR, by contrast, are meant to be held to term.