There are many people who either invest in SIP or invest in a government project to keep the future good after retiring from the job. Are you thinking of investing somewhere? But don’t know where to do it? Then today’s article is just for you. 

 

To make the best investment decision right now, it’s smart to look into the returns you can expect during the time you plan to keep your money in a specific investment. For example, if you’re thinking about a government scheme, check out the interest rate and see what it could yield over 10 to 20 years. The same goes for mutual funds; look at the average returns before you invest. This way, you can easily weigh your options between government schemes and SIPs.

 

Investing Through SIP

 

SIPs, or Systematic Investment Plans, let you invest a set amount regularly into mutual funds, promoting a habit of saving consistently. According to Adhil Shetty, CEO of Bankbazaar.com, “While SIPs come with market risks, they’ve historically provided annual returns between 12% and 15%. Although these returns aren’t guaranteed, they can potentially outstrip inflation and help you build significant wealth over time.”

 

Government Schemes

National Pension System (NPS)

 

The NPS is a government-backed retirement savings plan with low management fees. It offers market-linked returns, usually between 8% and 10%. Plus, you can enjoy tax deductions under sections 80C and 80CCD(1), up to Rs 2 lakh. The scheme requires partial annuitisation at retirement, ensuring you have a steady income afterward.

 

Senior Citizen Savings Scheme (SCSS)

The SCSS is tailored for those aged 60 and older. It provides a fixed interest rate of 8.20% per year, with an initial term of five years that can be extended by another three. While the interest is taxable based on your income bracket, this scheme offers a reliable and secure return.

 

 Public Provident Fund (PPF)

PPF is a solid long-term investment choice that comes with a 15-year lock-in period. Right now, it offers an interest rate of 7.10% per year. You can also get tax deductions on your contributions under Section 80C, and the returns are completely tax-free. It’s a go-to option for many because of its safety and tax perks.

 

Let’s break it down:

If you invest Rs 10,000 every month for 20 years in different options, here’s what you could expect:

 

SIP:

With an average annual return of 10%, your investment could grow to around Rs 76 lakh.

 

NPS:

If you go with an average return of 9%, you’d end up with about Rs 66 lakh.

 

PPF:

At the 7.10% interest rate, your total would be roughly Rs 52 lakh.

 

Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.