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Nowadays, wherever you look, whomever you listen to, everyone is just doing SIP-SIP. This is a great way to make big money in the long term. But in this 'storm of SIP', we are forgetting those evergreen investment options, which have been keeping our hard-earned money safe for decades. So let's know why and when 'old lions' like FD, RD, and PPF can prove to be better than SIP even today.

Magic of SIP

By investing in mutual funds through SIP, you get the benefit of the 'power of compounding'. Through this, your money is invested in the stock market, which can give a great return of 12% to 15% or even more in the long run. SIP can beat inflation and make you a millionaire. This is the reason why today it remains everyone's first choice.

The biggest 'danger' of SIP

But it is also important to understand the danger of SIP. One truth of SIP is that its return is subject to market risks. That is, if the stock market ever falls, your money can also go into a loss. It is also possible that your investment goes into negative in the short term. If someone cannot take any risk at all or for those who need a fixed amount after a few years, this uncertainty can become a big risk for them.

Bet on FD, RD and PPF

In the era of market fluctuations and risky investments, when everyone is confused, then investors come across investment platforms that are our 'silent heroes', i.e. FD, RD, and PPF. These investment options may seem slow, but in terms of trust and safety, they cannot be matched. Fixed interest can be obtained by depositing a lump sum amount in FD, while RD converts small savings every month into big returns. Whereas PPF is a way to secure long-term income with tax exemption.

'Zero tension' and 'guaranteed return'

Let us tell you that the biggest strength of FD, RD, and PPF is 'security' and 'guarantee'. Yes, here the investor knows from the very first day how much money he can get on maturity. Whether the market falls or rises, there is no harm to your money. For parents, people close to retirement, or those who are saving money for a specific target (like a daughter's marriage) in 2-3 years, this can be a 'zero tension' investment option.

It is a profitable deal.
This is the truth of the world of investment, which is very important to understand, Guaranteed Return Plan vs Traditional Options. Yes, the investment in FD is a lump sum, so the death of the investor does not affect it, but tax and premature withdrawal can reduce the returns, while regular investment is made in RD, but the scheme stops on the death of the investor, while PPF is best for giving tax exemption and better interest rate, but after death, only interest can be received on the deposited amount. On the contrary, the Guaranteed Return Plan comes with life insurance, which gives full return tax-free to the nominee despite the death of the investor. This is what makes it a safe and complete plan.

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