In today’s time of rising prices, investing money has become very important for everyone. When you need money suddenly, your investments can help you.
If you have ₹50,000 in hand and are confused about where to invest, you should decide first before investing.
Many people wonder whether to start an annual SIP of ₹50,000 or buy an LIC policy for the same amount. They are unsure which option gives better benefits. So, let’s compare both and find out which investment is right for you.
Benefits of SIP of ₹50,000 per Year
If someone invests ₹50,000 per year in SIP, it can create good wealth in the long run. At an average return of 12–15%, this amount can grow to around ₹10 lakh in 10 years. The biggest advantage of SIP is that it balances market ups and downs and increases returns through compounding. SIPs also offer ELSS tax-saving options, and you can withdraw your money when needed. They give both flexibility and growth, which is why many people prefer SIPs today.
Benefits of LIC Policy of ₹50,000 per Year
Investing in an LIC policy is a safe and reliable option. It means saving your money with security. You get guaranteed returns and insurance coverage under one plan. A policy worth ₹50,000 per year provides financial support to your family in case of any unfortunate event. Though returns are lower, around 5–7%, it offers tax benefits and stability. LIC is ideal for people who want safe and risk-free savings.
Which Investment Is More Profitable?
If your goal is to build wealth faster and earn higher returns, SIP is the better choice. It gives flexibility and helps grow your money with market performance. But if your goal is safety and guaranteed returns, an LIC policy is more suitable.
In short, SIP is for growth, and LIC is for security. Choose according to your financial goal and comfort with risk.