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SIP Vs traditional saving: Which is better and secure financial option in India? EXPLAINED

The article from India TV News discusses the comparison between Systematic Investment Plans (SIPs) and traditional saving methods in India, highlighting their respective benefits and security aspects. SIPs involve regular investments in mutual funds, offering benefits like rupee cost averaging, potential for higher returns due to market-linked investments, and the flexibility to start with small amounts. They are praised for their potential to combat inflation through equity exposure and for fostering a disciplined investment approach. On the other hand, traditional saving methods like fixed deposits (FDs), Public Provident Funds (PPF), and savings accounts provide safety, guaranteed returns, and are backed by government assurance, making them less risky. However, these traditional options often yield lower returns compared to SIPs, especially in the long term, and might not keep pace with inflation. The article suggests that while SIPs could be more lucrative for those willing to accept market volatility, traditional savings are preferable for risk-averse investors or those seeking capital preservation. The choice depends on individual financial goals, risk tolerance, and investment horizon.

Read the Full India TV Article at:
[ https://www.indiatvnews.com/explainers/sip-vs-traditional-saving-which-is-better-and-secure-financial-option-in-india-for-investment-a-details-explanation-personal-finance-business-news-2024-12-11-965777 ]