PPF vs SIP, Sept. 3 -- Public Provident Fund (PPF) is an investment product, while a Systematic Investment Plan (SIP) is a method of investing, typically used for mutual funds.

Before choosing, ask yourself these three questions:

PPF is designed for long-term, disciplined saving. It offers government backing, periodically revised interest rates, and tax benefits. But it comes with limitations, a 15-year lock-in and restrictions on early withdrawals.

An SIP in an equity mutual fund takes a different route. Investors commit a fixed amount at regular intervals into mutual funds, direct stocks, or similar options. Because equity mutual funds invest in market-linked securities, valuations can rise or fall sharply.

The trade-off is clear: g...