⚖️ Side-by-Side Comparison · 2026

SIP vs PPF vs FD –
Which Investment Gives Best Returns?

Three most popular investment options in India — compared on every parameter. ₹10,000/month for 20 years: SIP creates ₹1 Crore, PPF creates ₹53L, FD creates ₹55L. But returns aren't everything. Here's the complete picture.

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Comparison Table

SIP vs PPF vs FD — Complete Comparison

FactorPPFFDWinner
Expected Returns12-15% p.a.7.1% p.a.
RiskMarket riskZero
Tax on Returns10% LTCG above ₹1L/yrTax-Free (EEE)
Lock-inNone (3yr for ELSS)15 years
Best for7+ year wealth creationSafe guaranteed return
₹10K/mo for 20yr~₹1.00 Cr~₹53 L
Inflation adjustedStrong positive returnsBarely beats inflation
Tax saving (80C)Only ELSS typeYes
💡 Verdict: SIP wins for long-term wealth creation (7+ years). PPF wins for safe tax-free guaranteed returns. FD wins for capital protection and short-term goals. The best portfolio uses ALL THREE: FD for emergency fund + PPF for safe 80C + SIP for long-term wealth. See SIP Calculator, PPF Calculator, FD Calculator.
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FAQ

Frequently Asked Questions

SIP vs PPF vs FD — which is best?
Depends on your goal: SHORT TERM (under 3yr): FD wins — safe, liquid, no lock-in. MEDIUM TERM (3-7yr): PPF or Balanced MF — stability + some growth. LONG TERM (7yr+): SIP wins decisively — inflation-beating 12%+ returns compound dramatically. Most financial advisors recommend: FD (3-6 months emergency) + PPF (80C benefit) + SIP (remaining savings) as the optimal combination.
Does SIP really beat FD long-term?
Yes, significantly. ₹10,000/month for 20 years: SIP at 12% = ~₹1 Crore. FD at 7.5% = ~₹55 Lakh. Difference: ₹45 Lakhs. The gap grows with time — at 30 years: SIP ~₹3.5 Cr vs FD ~₹1.3 Cr. However, SIP involves market risk — returns are not guaranteed. Never put short-term money (needed within 3 years) in equity SIP.

🔗 Related Comparison Tools

SIP CalculatorPPF CalculatorFD CalculatorSIP vs FD ComparePPF vs ELSSELSS Calculator

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