SIP or FD, were you also confused with these two? Can’t figure out which is better for you? Then don’t worry; we are going to discuss it today in this article. If you want to invest the savings made every month instead of investing a lump sum amount, then you have two better options. The first option is the post office RD, in which your investment will be safe and returns will be guaranteed. The second option is SIP. Through this, investment is made in mutual funds. This is a market-linked scheme, so its returns are also based on the market. In such a situation, if you want to invest ₹ 10,000 every month, then how much profit will you get? Take a look.
Post Office RD is 5 years old
You get the option of RD of different tenures in the bank, but if you invest money in post office RD, then you have to invest in RD for 5 years. But you are given a good interest in post office RD. At present, you are getting interest at the rate of 6.7 percent.
How much return will you get on investing?
If you invest in post office RD, then according to Rs 10,000 monthly, you will invest Rs 6,00,000 in 5 years. If you look at the interest of 6.7 percent, then you will get an interest of Rs 1,13,659. In this way, you will get a total of Rs 7,13,659 as a maturity amount.
How much money will be made in SIP?
If you invest Rs 10,000 every month in SIP for 5 years, then here also your total investment will be Rs 6,00,000. The average SIP returns are believed to be around 12 percent. In this case, according to 12 percent, you will get Rs 2,24,864 as interest. In this way, after 5 years, you will get a total of Rs 8,24,864.
Better scheme to make money
SIP is undoubtedly a market-linked scheme, but it is considered very good for making money. It has less risk than investing directly in shares and gets the benefit of rupee cost averaging along with compounding in the long term. In such a situation, you earn a lot of profits.
The power to beat inflation
The average return of long-term SIP is 12 percent, but if luck favors, it can be even better. This much return is not available in any other scheme at present. Experts believe that this scheme has the power to beat inflation. The longer you invest in SIP, the more benefit you get from compounding. In such a situation, it is considered a very good scheme in terms of wealth creation.
