The document discusses systematic investment plans (SIPs), public provident funds (PPFs), and compares the two options. SIPs allow regular small investments in funds and benefit from compounding returns over time. PPFs offer lower but guaranteed returns and have restrictions including a 15-year lock-in period. While both can fund long-term goals, SIPs provide more flexibility and opportunity for higher returns compared to PPFs. The document provides details on investment limits, interest rates, liquidity, and tax benefits of SIPs and PPFs to help decide which may be a better fit depending on an individual's needs and goals.

2. SYSEMATIC INVESTMENT PLANS
 SIPs are like drops of water, the more collected, the
larger the pool it creates.
 SIPs are a disciplined way of investing in funds.
The more disciplined you are, the better it works
out for you.
 The POWER OF COMPOUNDING works best for
people investing through SIPs.

3. UNDERSTANDING PPF
 The interest rate on a PPF account for this year 2015-
2016, is 8.7%
 You can open an account with Rs. 100/-, but minimum
investment is Rs. 500/- and maximum is Rs. 150000/-.
 A joint account cannot be opened. Only one account
per person can be opened.
 The maturity period is 15 years, but partial withdrawal
is allowed under certain conditions.

4. SIP Vs PPF
 SIPs are more beneficial and have less restrictions, as
compared to a PPF.
 PPFs may or may not continue in the future, but markets
can’t shut down for good.
 SIPs can be used to fund long and short term goals,
through debt and equity funds.
 PPFs can fund goals occurring after it’s maturity. Although
partial withdrawal is allowed, but under certain conditions.

5. THIS TABLE WILL HELP YOU DECIDE
PARTICULARS SYSTEMATIC
INVESTMENT PLAN (SIP)
PUBLIC PROVIDENT
FUND (PPF)
RATE It fluctuates, an average of
11% can be considered.
8.7%
LIQUIDITY Easy liquidity It has a 15 year lock in. After
maturity, it can be extended
in blocks of 5 years.
RISK Very Risky Less Risk
Withdrawal Can be withdrawn any time Partial withdrawal is
allowed in the 7 year, under
certain conditions.
Tax benefits Lock in for 3 years, after
which it is tax free.
Investment, income earned
and maturity amount is tax
free.

6. WORKING OF SIPs
SIP
POWER OF COMPOUNDING
FUND YOUR FINANCIAL GOALS

7. POWER OF COMPOUNDING
 Power of Compounding works on lump sum
amounts as well as SIPs.
 It is more effective when investments are done
through SIPs, as you get interest on interest.
 Another important factor to keep in mind is that,
you need to start investing early, for the
compounding to work it’s magic.

8. CONCLUSION
 I would like to conclude by saying that, SIPs and PPF
are both good options for investment. But SIPs can
help you reach your goal faster than PPFs.
 Investing through SIPs are more flexible than
investing in PPFs, as we have already seen earlier. So
now, you know what you want, so invest wisely!

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