If you want to invest but are unable to understand where to invest money, then there are many good options in SIP (Systematic Investment Plan). These include PPF (Public Provident Fund), NPS (National Pension System) and Mutual Funds. Each scheme has its own benefits and it depends on your need and risk taking ability. Experts say that before investing, it is important to understand what your goal is so that you can take the right decision on your best SIP plan.
PPF (Safe Investment Option)
PPF (Public Provident Fund) is a great option for those who want to invest for a long time without any risk. It has a lock-in period of 15 years, but some amount can be withdrawn after 7 years. PPF is a safe investment that gives a fixed interest of around 8%. It is good for those who value security more than high returns. It is quite popular among investors due to government guarantee and tax-free interest.
NPS (Perfect for retirement planning)
NPS (National Pension System) is a retirement scheme in which partial withdrawal can be made after 10 years under certain conditions. It is a market-linked scheme, so there is no fixed return, but it can be good in the long run. Trivesh, CEO of Tradejini, says, “NPS is a scheme in which you can invest money according to your choice and it also offers tax exemption. It is a good option for those who want to plan financially for their retirement.”
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Mutual Funds (Flexible option for higher returns)
Investing in mutual funds through SIP (Systematic Investment Plan) gives investors more flexibility. But since it depends on the market, there is also risk involved. However, there is a possibility of good returns in the long run. It is important to be patient while investing in mutual funds, whether the market goes up or down. When investing through SIP, a fixed amount is invested every month, which can be used to take advantage of the market fluctuations.
The right choice of SIP investment depends on your needs and priorities. If you want safe and fixed returns, then PPF is the best option. If you want to save money for retirement, then NPS will be right. On the other hand, if you want higher returns and can take a little risk, then mutual funds can be a good option. By choosing the right investment, you can make your future secure.
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