SIP vs PPF: Which is Better Long Term Investment Option? Comparison
Anmol last edited by Anmol
I think PPF investment is best fit for safe investors in India. The ones who want fixed and risk free returns. You can contribute a fixed amount to PPF every year and build a good post retirement fund. Also, the tax exemptions on PPF make it the best choice amongst investors.
But, yes the benefits of investing through SIP in mutual funds can't be ignored too. In fact, SIP in mutual funds has got huge popularity in the recent years.
So, I think firstly invest in PPF then think of other long term investment options.
Suryakant last edited by ftForumMod
@Anmol My vote also goes to Public Provident Fund. I am a retired person and know the importance of money saved through PPF. I have been saving in my PPF account and really feel good to have an adequate fund for my after retirement life.
My suggestion to all the youngsters, do build one such fixed income generating investment fund.
I know people are attracted towards mutual funds and stocks these days. I am not against it. You may go for these if you have surplus and can take risk.
My one cent is, do have a fixed return giving fund like PPF.
Smart2Investor last edited by
@Harleen I think SIP in mutual funds is a better way of investing as compared to age old method like PPF. You can invest even a small amount through Systematic Investment Plan (SIP).
So, this seems to be an ideal choice for the people who wish to invest small amount of money regularly. Now, if you ask me, SIP vs PPF which is better, I'll definitely favour SIP in mutual funds looking at the returns and other important factors.
Kavita last edited by ftForumMod
That sounds a wise option. Invest in PPF first and then if you have any surplus you can go for mutual funds and other investment options. At least, you have some money safe in PPF that shall guarantee fixed return.
Trader buddy last edited by
@Harleen Definitely SIP wins provided if one invests in good mutual funds. PPF is safe but doesn’t give high returns. SIP in mutual funds gives you a chance to earn more as compared to other investments.
Amit Kumar last edited by
Yes, SIP is a systematic way to invest in mutual funds. If you don't have money to invest a big or lump-sum amount the SIP is a good alternative to it.
You get some respite since there's no burden of depositing huge amounts and you can start investing with a small amount of Rs.500 only. Also, you can plan your investments fortnightly or monthly as you feel comfortable. So, each month an auto debit can be set to transfer money into the plan chosen.
Sbsfin last edited by
Thanks for suggestions!! Now i have a decent income, so looking for some other investing ideas. I can take moderate risk only. Is SIP a good way to invest my excess funds? Can anyone who has invested, let me know a bit more about it? Some feedback on it is much appreciated.
Anmol last edited by
@Sbsfin SIP sounds to be a common way of investing these days. But, there's no surety of fixed returns. So, if you can take some risk then only go for it.
Nidhimehra last edited by ftForumMod
Both are good. This depends on your cash flow situation. Suppose if you have lumpsum then there is no question for SIP But if you don't have lumpsum and getting regular cash flow like saving from salary then SIP is a good option. So there is no actual comparison for this. This all depends on your financial situation
Madhu last edited by ftForumMod
@Harleen I think SIP is a better investment alternative. It builds a habit of savings without putting an extra financial burden on us. A fix amount even if a small one is good to start saving.