Who will win the race to become a millionaire? You will also be surprised to know this mathematics:

News India Live, Digital Desk: Whenever it comes to saving money and increasing it, there is one question that comes to our mind the most. Brother, where should I invest the money?”

Two options are most popular in our country. The first is reliable and official PPFwhich our fathers and grandfathers always recommend. And the second one is the ‘cool’ option these days. SIP (Mutual Funds)whose discussion is on the lips of every youth. Often we get confused between these two as to which one has more benefits.

If you are also in this dilemma, then let us understand today in very simple language that SIP And ppf Which one can make you rich and which one should you go with?

1. PPF: Guarantee of peace and security (Public Provident Fund)
First of all let’s talk about Public Provident Fund i.e. PPF.

• Security: If you are a person who is afraid of risk and do not want to lose even a single penny of yours, then PPF is your best friend. It is completely official and safe.
• Interest: At present the government is close on this 7.1% Is paying interest around Rs. This interest is fixed, that is, you know how much you will get.
• Taxes and Lock-in: In this, money has to be deposited for 15 years. Tax exemption is available on investing in it and the interesting thing is that the entire amount received on maturity is also tax free.

2. SIP: If there is risk, then there is no risk… but ‘reward’ (Systematic Investment Plan)
Now let’s talk about SIP, which is related to the stock market.

• Return bang: The interest rate in SIP is not fixed. But if we look at the history of the last 10-15 years, on an average 12% to 15% Has given returns upto. Yes, almost double that of PPF!
• The magic of compounding: Compounding (compound interest) in SIP works very fast. It has the potential to make you a millionaire in the long run.
• Risk Factor: Yes, there is market risk. If the market goes down, returns may be lower. But if you play longer (5-10 years), the fear of loss becomes much less.

Final Verdict: Who’s Better?

Let us understand this with an example.
If you invest money in PPF, your money will grow slowly and safely, like a tortoise. But if you choose SIP, your money can run like a rabbit, only the path may be bumpy (Market volatility).

• Select PPF: If you want a completely safe fund for your daughter’s marriage, children’s education or retirement.
• Choose SIP: If you are still young, can take some risk and want to build a huge wealth in 10-15 years.

Our Suggestion (Expert Tip)
It is wise to keep a balance of both in your portfolio. Invest one part in PPF for security and one part in SIP to earn big profits. After all, never put your eggs in one basket!