SIP VS PPF Which Is better option in INDIA
SIP
SIP (Systematic Investment Plan)Vs PPF is an investment plan that many people are interested in investing in It is a method of investing in a mutual fund It invests in it as it earns more inters in a short period of time SIP is a regular investment over time .
Features of SIP
- Flexibility–Sip offer flexible term and duration
- Regular Investments: Regular investing in it gives higher returns (1000 per month)
- Rate of return — As SIP is regularly invested, returns are earned when market rates fall and returns increase when market rates rise. This strategy reduces the market position
PPF
PPF is Public Provident Fund where many government people like to invest It is estimated that if you invest for a long time, you will get a guaranteed return on tax benefits .
Features of PPF
- Tax Benefits –Even those investing in PPF will not have to pay any TAX at the rate under Section 80 which will help reduce the total investment up to Rs 1.5 lakh.
- Govt Backed–PPF is India’s lowest risk fund in which many government people invest for long term
- Contributions can be made in lump sums or in a maximum of 12 installments per year.
- Minimum amount can be invest 500 rupees
- maximums amount that can be invest 1.5 lakh per year
- Those who are investing in PPF will get higher returns after 6 years After 3rd year they can take loan in ppf account
