Long term investment: When it comes to future security in every family, the first question that arises is where to invest the money. People want their hard-earned money to be safe and also give good returns over time. Those who invest for a long time have three most popular options – Systematic Investment Plan (SIP), Sukanya Samriddhi Yojana (SSY), and Public Provident Fund (PPF). All these three schemes give relief to the pocket of the common investor and also give an opportunity to save tax. But the real question is, which option proves to be the most beneficial in the long term?
SIP: Flexibility and assurance of high returns
Systematic Investment Plan, i.e., SIP, has become the first choice of urban investors in today’s time. In this, the investor puts a fixed amount in the mutual fund every month. The biggest feature is that there is no strict lock-in period in it; that is, if needed, the investor can withdraw money in between. But the real benefit of SIP is available only when it is continued for 10 to 15 years.
Equity-based SIP can give an average annual return of up to 12 percent in the long run. For example, if a person invests Rs 5,000 every month for 15 years and gets an average return of 12%, then a capital of about Rs 25 lakh can be prepared on maturity. This is the reason why SIP is the right way for those who are willing to take risks and want to earn more than traditional options.
Sukanya Samriddhi Yojana: Daughters’ future is secure
The Government of India had started the Sukanya Samriddhi Yojana (SSY) especially for daughters. This scheme can be opened only in the name of the daughter. Till August 2025, 8.2% annual interest is being given on this scheme. Here, the investor has to deposit for 15 years, while the account remains active till the daughter turns 21.
Its biggest feature is that the entire amount deposited, interest, and maturity amount is tax-free. If a parent invests Rs 1.5 lakh every year in this scheme for 15 years, then by the time the daughter turns 21, about Rs 65 lakh can be in hand. This is the reason why SSY is considered the most reliable option for big goals like education or the marriage of daughters.
Public Provident Fund: Safe and traditional investment
PPF (Public Provident Fund) has always been considered a symbol of safe investment in India. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in it every year. In August 2025, it is getting 7.1% annual interest.
The lock-in period of this scheme is 15 years, and the most important thing is that the money invested in it, interest, and maturity amount are completely tax-free. If a person deposits Rs 1.5 lakh every year for 15 years continuously, then a capital of about Rs 40 lakh can be created. This is the right option for those investors who want to gradually create a large fund of money without risk.
Which is the best to choose?
Now the question is, which one should be chosen among SIP, SSY, and PPF? The answer depends on what the investor’s goal is. If you want high returns and can bear the fluctuations of the market, then SIP will not disappoint you. On the other hand, if you have a daughter and you want to secure her future, then there is no better option than the Sukanya Samriddhi Yojana. On the other hand, if you want tax-free and safe investment without risk, then PPF is the most comfortable option for your pocket.