By Admin 
Everyone is worried about their future, in such a situation we look for the help of investment for this. Especially employed people, who work for 62 years and after that they have to survive only on their savings. There are many methods for this, but most people like to invest in SIP or PPF. However, many times we are not able to differentiate between the two as to which is better for long term investment. So today we will tell you which of the two will be beneficial for you.
What is PPF?
First of all, it is important for us to know, what is PPF? The full name of PPF is Public Provident Fund. This is a popular long term savings scheme of the Government of India. PPF gives tax free returns for 15 years. This is a great option for retirement planning. PPF is a scheme of the Government of India, so it is a safe savings or investment plan.
What is SIP?
Now let’s talk about SIP, the full name of SIP is Systematic Investment Plan. This is a mutual fund in which people like to invest more. This mutual fund can be short term or long term. In this you invest a small amount every month. It completely depends on the fluctuations of the market. It is not tax free and when we have to withdraw money from it, we get interest as per the market rate.
ppf vs sip
Both PPF and SIP are good options for long-term investment. But PPF is a government scheme, hence its returns are fixed. In PPF you will get returns according to the interest rate of 7.1 percent. So the return of SIP is not fixed, it is a high return policy which is linked to the market. In this, returns range from 10 percent to 14 percent. Although money remains safe in PPF but returns in SIP are not safe.
What will increase the most money in 10 years?
If you invest Rs 10,000 every year in SIP for 10 years, do you know how much this amount will become after 10 years? SIP gives compound returns of 12 to 15 percent, so you will get good returns from it. By investing Rs 1 lakh in this, you can get approximately Rs 1 lakh 75 thousand at the rate of 12%. If you keep depositing the same amount in PPF, you will get it at the current interest rate of 7.1%.