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Comparison between a lumpsum investment in a Fixed deposit & a debt mutual fund

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Lump sum investment 10000
Duration of investment (years) 5
Interest rate on fixed deposit 9.0%
Interest rate on debt fund (eg. Income fund) 9.0%
Fixed Deposit: Interest income is taxed as per slab each year.
Choose applicable tax slab 10.00%
Debt Fund: Taxation is deferred until redemption and is either
10% or 20% with indexation (based on cost inflation index)
Rate of annual increase in cost inflation index (5% is good no) 5.00%
Corpus from fixed deposit (post-tax) Tax paid each FY 14,743
Corpus from fixed deposit (post-tds) 14,743
Corpus from fixed deposit (post-tax) if applicable 14,743
Corpus from debt fund (pre-tax) 15,386 For tenure < 3Y, gains are added to income
Post-tax debt fund corpus without indexation 14,277 For tenure < 3Y, gains are added to income
Post-tax debt fund corpus with indexation 14,846
Clarity is sought on the availability of the indexation option
Corpus from fixed deposit (post-tax) Tax paid upon maturity
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Years
Fixed Deposit vs Debt Fund
Fixed Deposit Debt Fund (pre-tax) Final post-tax debt fund corpus
Fixed Deposit Debt Fund
Year Sum at Sum at Sum at Sum at
year start year end year start year end
1 10000 10807 10000 10900
2 10807 11680 10900 11881
3 11680 12623 11881 12950
4 12623 13642 12950 14116
5 13642 14743 14116 15386
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Tenure Corpus from fixed deposit (post-tax) Tax paid each FY
1 10,807
2 11,680
3 12,623
4 13,642
5 14,743
6 15,933
7 17,219
8 18,610
9 20,112
10 21,736
11 23,490
12 25,387
13 27,436
14 29,651
15 32,045
16 34,632
17 37,428
18 40,449
19 43,715
20 47,244
21 51,058
22 55,180
23 59,634
24 64,449
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
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Corpus from fixed deposit (post-tax) Tax paid each FY
Corpus from fixed deposit (post-tax) Tax paid upon maturity
Post-tax debt fund corpus without indexation
Post-tax debt fund corpus with indexation
Post-tax debt fund corpus without indexation Post-tax debt fund corpus with indexation
10,807 10,807
11,687 11,687
12,646 12,646
13,268 13,712
14,277 14,846
15,376 16,077
16,575 17,413
17,881 18,865
19,305 20,441
20,857 22,152
22,549 24,012
24,393 26,032
26,402 28,227
28,593 30,612
30,981 33,204
33,584 36,021
36,421 39,083
39,514 42,412
42,885 46,030
46,559 49,965
50,564 54,243
54,929 58,895
59,688 63,955
64,874 69,458
4 6 8
Duration (years)
Corpus from fixed deposit (post-tax) Tax paid each FY
Corpus from fixed deposit (post-tax) Tax paid upon maturity
Post-tax debt fund corpus without indexation
Post-tax debt fund corpus with indexation
Corpus from fixed deposit (post-tax) Tax paid upon maturity
10,807
11,680
12,623
13,642
14,743
15,933
17,219
18,610
20,112
21,736
23,490
25,387
27,436
29,651
32,045
34,632
37,428
40,449
43,715
47,244
51,058
55,180
59,634
64,449
8 10 12
Corpus from fixed deposit (post-tax) Tax paid each FY
Corpus from fixed deposit (post-tax) Tax paid upon maturity