SIP, PPF, and FIXED DEPOSIT(FD): Which is the Better Option?

There are many investment alternatives available in the market today that claim to give high returns. Systematic Investment Plans (SIP), Public provident fund (PPF), and Fixed Deposits (FD) are amongst the top investment alternatives you can opt for.

Take a look at a few features and advantages of each of the three investment options:

1. Public Provident Fund

It is a long term investment of the Government of India under the Public Provident Fund Act, 1968.  PPF has been a popular choice of investors as it is a usually progressively traditional type of investment which loans equalization to one’s portfolio. A PF record can be opened for a base term of 15 years and with a base preliminary store of Rs. 500.

2. Systematic Investment Plan

The plan facilitates investors to put reserves into mutual funds.

Investors can make a standard investment of a pre-selected sum, usually less, into mutual funds all the time than at one go. SIP’s may be quantifiably relying upon the principles directing tax collection on common reserve endeavor.

The key advantage is that there is no lock-in time because of which investors can withdraw their investment at any time.

Interest is determined yearly and credited to the record toward the end of each year.

Also, Read This: SIP, PPF, and Fixed Deposit

3. Fixed Deposit

FDs offer safe moderate-high returns and flexibility. While the interest rates vary from one institution to another, the returns are timely and assured. FD is quick too open and easy to manage.