When it comes to long-term investments in India, two options emerge. Systematic Investment Plan (SIP) and Public Provident Fund (PPF). Both cater to different financial goals and risk appetite. Now the important question here is which will be a better option on the scale of risk and return. In today’s story, we are going to talk about this.
Risk and return
SIP: It offers the highest profitability among the options available on the market, but it also has risks.
FPP: It offers safe and predictable returns, attractive to those seeking stability and low risk.
SIP: This allows the investment period to be adjusted according to individual financial objectives.
FPP: You need to invest for a minimum of 15 years, which promotes the habit of disciplined saving for important future milestones.
SIP: Those who want to withdraw their investment amount before the stipulated time. This option is the best for them.
FPP: Under this option, a person cannot withdraw money early.
How to get more benefits from SIP
To get more benefits from mutual funds, it is advisable to take SIP and increase it every year. If you increase the SIP by almost 10% every year, you will get good returns at the end. By increasing the investment in SIP, one can be successful in raising funds to meet the daily increase in inflation, own expenses and future. You can increase the investment in SIP in two ways. Increase the investment in SIP with a fixed amount every year. For example, suppose you have a monthly SIP of Rs 10,000. Keeping in mind your retirement expenses, you can increase it by Rs 1,000 or Rs 2,000 every year.
To get more benefits from mutual funds, it is advisable to take SIP and increase it every year. If you increase the SIP by almost 10% every year, you will get good returns at the end. By increasing the investment in SIP, one can be successful in raising funds to meet the daily increase in inflation, own expenses and future. You can increase the investment in SIP in two ways. Increase the investment in SIP with a fixed amount every year. For example, suppose you have a monthly SIP of Rs 10,000. Keeping in mind your retirement expenses, you can increase it by Rs 1,000 or Rs 2,000 every year.
