PPF vs SIP with Rs 69,000/year investment: Which can create higher corpus in 15 years?

SIP vs PPF Comparison: When it comes to investing, there are a lot of options available in the market. Out of all, we are comparing two of them - SIP and PPF. SIP (Systematic Investment Plan) is a mutual fund investment option that is linked to the stock market and allows investors to invest a fixed amount at regular intervals. While PPF (Public Provident Fund) is a government-backed scheme where investors can invest their money on a yearly basis and get stable returns.

Both are long-term investments that help investors to accumulate wealth for their future financial needs. But they differ from each other in various aspects, such as maximum and minimum investment amounts, maturity period, etc.

Key things about SIP

• Returns are not fixed and can fluctuate
• People can invest as little as Rs 500 per month.
• No maximum investment limit.
• No lock-in period
• Risk level is higher.

Key things about PPF

• Offers guaranteed returns
• Considered a safe investment
• Minimum investment amount Rs 500/year
• Maximum investment amount is Rs 1.5 lakh/year.

SIP vs PPF: Comparing both the investment options

• Investment amount: Rs 69,000 per year
• Time: 15 years

In this write-up, we will compare both investment options by investing Rs 69,000 per year for 15 years separately to see which option will give higher returns.

PPF Vs SIP: What rate of return are we using for SIP calculation?

For SIP calculations, we're assuming a 12 per cent annual return rate.

PPF Vs SIP: What rate of return are we using for PPF calculation?

Since PPF is a government scheme, it offers a fixed interest rate. So we are using a 7.1 per cent rate for all the calculations.

SIP investment with Rs 69,000 annually: How much money do you need to invest every month?

As per the calculations, if you invest approximately Rs 5,750 every month or Rs 69,000 annually for 15 years, the total investment will be around Rs 10,35,000.

SIP investment with Rs 69,000 annually: How much capital gain can be earned after 15 years?

Capital gains of approximately Rs 17,01,606 can be earned in 15 years.

SIP investment of Rs 69,000 annually: How much money can one get after 15 years in SIP?

The total corpus generated at the end of 15 years would be approximately Rs 27,36,606.

SIP investment calculations (with 12% annual interest rate):

• Monthly investment: Rs 5,750
• Total investment (15 years): Rs 10,35,000
• Estimated returns: Rs 17,01,606
• Total value: Rs 27,36,606

PPF investment of Rs 69,000 annually: Total amount to be invested in 15 years

As per the calculations, if you invest Rs 69,000 annually for 15 years, the total investment will be around Rs 10,35,000 (almost the same as you are investing in SIP above).

PPF investment of Rs 69,000 annually: How much interest will be earned after 15 years?

An interest of Rs 8,36,376 will be earned in 15 years.

PPF investment of Rs 69,000 annually: How much money can one get after 15 years in PPF?

The final corpus generated at the end of 15 years will be Rs 18,71,376.

PPF investment calculations (with 7.1% annual interest rate):

• Annual Investment: Rs 69,000
• Total Investment (15 years): Rs 10,35,000
• Estimated Returns: Rs 8,36,376
• Total Corpus: Rs 18,71,376

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning.)