By Admin 
RD vs SIP Investment: Indians often keep looking for new opportunities for saving and investing along with their earnings. Because in case of bad times and financial problems, only your investment protects you. This is the reason why Indians give so much importance to savings. Although there are many savings options available in the market, investors should invest keeping in mind their needs and earnings.
Many investors do not want to take much risk and want to get limited returns. At the same time, there are other investors who want higher returns and are not afraid of taking risk for this. Today we are giving information about two famous investment options available in the Indian market.
RD in post office or bank
Investing in RD is seen as a safe option. In which you deposit a fixed amount every month in the bank or post office. In RD you get fixed interest rate (6 to 7.5 percent). There is no risk of any kind in this scheme and you get money along with interest on your deposit. However, there are some differences between the RD of banks and post offices.
The tenure of RD in the post office is 5 years and also a minimum amount has been fixed for opening the account. Whereas bank RD makes the deposit amount and its duration more flexible. Which can provide ease to investors. Also, the deposit amount of different banks may also be different. Investors can choose RD in bank or post office as per their needs.
To open an RD account in the post office, you have to go to the post office. At the same time, many banks give investors the option to open RD online. That means, you can start your RD journey in the bank right from your home.
SIP (Systematic Investment Plan) in Mutual Funds
SIPs in mutual funds are for such investors who are ready to face the ups and downs of the market. You benefit by investing in SIP gradually over a long period of time. You can get 12 to 15 percent returns annually in SIP. However, it completely depends on the market. The best thing about SIP is that it can be closed anytime.
If you are preparing to invest for a long time, then SIP can be a good option for you. At the same time, if you want to invest risk free for a short time, then you should choose the option of RD. Before investing, keep in mind your needs and risk appetite.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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