Simple, practical comparisons across returns, risk, liquidity, tax benefits, and suitability. Choose confidently.
SIPs (Systematic Investment Plans) invest periodically into mutual funds and are market-linked, while PPF is a government-backed, long-term small savings scheme that offers guaranteed interest and strong tax benefits. They are not substitutes; many investors use both.
| Factor | SIP (Equity/Hybrid/ Debt MF) | PPF |
|---|---|---|
| Nature | Market-linked, returns vary with fund category and markets | Government-backed small savings scheme with notified interest |
| Risk | Varies: Equity > Hybrid > Debt | Low (sovereign backing) |
| Returns | Potentially higher over long term for equity funds; not guaranteed | Fixed per govt. notifications; compounded annually |
| Liquidity | High (open-ended funds allow redemption anytime, subject to exit loads/ NAV) | Lock-in 15 years; partial withdrawals from year 7, loans available earlier |
| Taxation | Depends on fund type and holding period (STCG/LTCG rules) | EEE: Eligible under Section 80C; interest & maturity currently tax-exempt |
| Minimum/Maximum | No fixed cap by SIP mechanism (fund-specific minimums apply) | Min ₹500/year; Max ₹1.5 lakh/year (subject to govt. rules) |
| Best for | Long-term wealth creation; goals > 5–7 years; higher risk appetite | Guaranteed, tax-efficient debt anchor; long-term stability |
Pro tip: Many investors split contributions — use PPF as the safe, tax-efficient debt bucket and SIPs in equity funds for long-term growth.
FDs offer fixed, bank-guaranteed returns and suit short-to-medium term safety needs. SIPs in equity/hybrid funds target long-term growth and are market-linked.
Choose SIP if:
Choose FD if:
Tax/Liquidity:
RD is like a monthly deposit version of FD with guaranteed bank interest. SIPs invest monthly into mutual funds and are market-linked.
Choose SIP if:
Choose RD if:
Tax/Liquidity:
If you have a large amount ready and markets trend up, lumpsum can compound earlier. SIPs average your costs over time and reduce timing risk — many investors prefer SIPs for behavior and discipline.
Choose SIP if:
Choose Lumpsum if:
Smart middle path:
* SIPGenie and its AI based content, including the SIP calculator are for educational and informational purposes only and do not constitute financial advice. Investments are subject to market risks, and results from this calculator are estimates, not guarantees, as past performance is not an indicator of future results.
PPF is safer and tax-efficient with guaranteed returns, while SIPs in equity funds can aim for higher growth with risk. They complement each other.
For equity-oriented SIPs, 7–10+ years is generally considered good for compounding and to ride out volatility. Align it to your goal date.
It has sovereign backing and is considered very low risk. The interest rate is notified by the government periodically.
Open-ended funds usually allow redemptions anytime (check for exit loads or lock-in like ELSS). NAV is market-driven.
Use our SIP calculator with step-up and export a neat PDF report.