Making investments is one of the crucial ways to build a financial corpus for the future. However, with so many investment options available, people are often confused about which one to choose. When it comes to long-term investment, two of the most popular options in India are mutual fund Systematic Investment Plans (SIP) and Public Provident Fund (PPF).Both allow you to generate returns over a period of time, but they are fundamentally different. While returns from PPF are backed by the government, the SIP provides market-linked returns. Saving Schemes That Are Just A Click Away: Public Provident Fund (PPF) Vs Fixed Deposits (FDs)What Is SIP And PPF?SIP: An SIP allows investors to invest a fixed amount regularly in mutual funds. Equity SIPs, in particular, are popular for their potential to deliver high returns, despite the market-linked risks.PPF: PPF is a government-backed scheme designed for risk-averse investors. It offers a fixed interest rate, revised quarterly by the government. PPF has a 15-year lock-in period. After maturity, the investment tenure can be extended in blocks of 5 years each. It also comes with tax benefits. SIP And PPF: Returns Over 15 YearsWhile comparing the returns from SIP and PPF, it is important to note that returns from an SIP are linked to how the stock market performs and thus carry risks. On the other hand, PPF is a safe investment option with guaranteed returns. You have to evaluate your own financial goals, risk appetite and the tax implications to decide which could be most rewarding between the two instruments. The PPF interest rate currently stands at 7.1%. Equity mutual funds can offer returns in the range of 10% to 15%. For example, in a PPF, if you invest Rs 1,00,000 annually for 15 years, at an interest rate of 7.1% per annum, you would earn a return of Rs 12,12,139. The total maturity amount will grow to Rs 27,12,139On the other hand, if you invest in an SIP which offers a return of 12% per annum, a monthly investment of Rs 8,500 for 15 years would yield a return of Rs 27,58,896. The total corpus will grow to Rs 42,88,896.A monthly investment of Rs 8,500 is almost equal to investing Rs 1.02 lakh annually.These are the estimated returns based on the given scenarios. However, the actual returns may vary with changes in interest rates and market conditions. SIP returns, in particular, are sensitive to market movements. To conclude, for a 15-year investment, SIPs in equity mutual funds offer significantly higher returns but come with market risks. PPF is a safer bet for guaranteed returns and tax benefits. It is ideal for conservative investors. Once you are clear about your risk appetite, financial goals and liquidity needs, you can decide which is best for you. Investing In PPF To Save Taxes? Here's How Much You Can Earn In 15 Years. Read more on Personal Finance by NDTV Profit.