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SIP vs PPF: Rs 95,000/year investment – Which can create larger corpus in 15 years?
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
SIP vs PPF: People who are looking for disciplined and consistent investment avenues can consider Systematic Investment Plans (SIPs) or Public Provident Funds (PPFs). Both differ in nature but help investors accumulate a substantial corpus in the long term. But which one is ideal for your financial goals? Let's find out, with an example, which option gives higher returns on an annual investment of Rs 95,000.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
1/10
What is an SIP? Key features
1/10- Market-linked investment option
- Can invest money based on financial capacity
- Offers average long-term return of 12 per cent
- People can invest monthly, quarterly, or yearly
- High Risk
- No lock-in period, investor gets to choose
2/10
Public Provident Fund benefits
2/10- Government-backed long-term savings scheme
- Can invest up to Rs 1.5 lakh per year
- Offers an interest rate of 7.1 per cent
- Maturity period is 15 years
- Low risk
- 15 years Lock-in period
3/10
Low risk vs high risk investment: How much corpus can you generate in 15 years?
3/10Can you guess how much retirement corpus you can generate in both - SIP and PPF - in 15 years with Rs 95,000 annual investment? Let's find out:
4/10
SIP Investment Calculation: How much money can you invest in 15 years?
4/10If you invest Rs 95,000 yearly in SIP (Rs 7,916 per month), your total investment will amount to Rs 14,24,880 in 15 years.
5/10
SIP Annual Returns: How much corpus can you generate in 15 years with Rs 95,000 annually?
5/10Assuming an average annual return of 12 per cent, the total corpus generated at the end of 15 years would be approximately Rs 39,94,224, including Rs 25,69,344 as capital gains.
6/10
Wealth creation with SIP: Calculations
6/10Monthly investment: Rs 7,916
Total investment (15 years): Rs 14,24,880
Estimated returns: Rs 25,69,344
Total value: Rs 39,94,224
7/10
PPF Investment Calculation: How much money can you invest in 15 years in the government-backed saving scheme?
7/10If you invest Rs 95,000 per year in a PPF, your total investment over 15 years will also amount to Rs 14,25,000.
8/10
PPF Interest Rate 2025: How much interest will be earned in 15 years with Rs 95,000 annually?
8/10However, with an annualised return of 7.1 per cent, the interest earned would be Rs 11,51,533.
9/10
PPF maturity after 15 years: How much can your corpus grow with Rs 95,000 annually?
9/10With this, the final corpus would be around Rs 25,76,533 (principal + interest).
10/10
PPF Returns (with 7.1% annual interest rate):
10/10Annual Investment: Rs 95,000
Total Investment (15 years): Rs 14,25,000
Estimated Returns: Rs 11,51,533
Total Corpus: Rs 25,76,533
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