Oct 17, 2024
EPF and Systematic Investment Plan (SIP) are two investment options available to employees. Here's a comparison of their features and benefits:
Features: EPF is a mandatory contribution scheme, while SIP is a voluntary investment option. EPF contributions are made by both the employee and employer, while SIP investments are made by the investor.
Benefits: EPF provides a fixed interest rate declared by the government, while SIP provides market-linked returns. EPF provides a life insurance cover, while SIP does not. EPF is a tax-free investment, while SIP is subject to capital gains tax.
By comparing the features and benefits of EPF and SIP, employees can choose the option that suits their investment and financial goals.