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SIP vs PPF for Rs 1,30,000/year investment: Which can create higher corpus in 15 years?
Written By Priya Vishwakarma
Published: 3:54 PM, Feb 11, 2025 | Updated: 6:48 PM, Feb 12, 2025
SIP vs PPF: For individuals who can afford to invest a fixed amount consistently over a longer period, Public Provident Funds (PPF) and Systematic Investment Plans (SIPs) can be good opportunities to accumulate wealth. Can you guess how much corpus you will have after 15 years in both investments if you invest Rs 1,30,000 annually? Let's find out.
If you invest Rs 1,30,000 per year in a PPF, your total investment over 15 years will be Rs 19,50,000.
SIP vs PPF: For individuals who can afford to invest a fixed amount consistently over a longer period, Public Provident Funds (PPF) and Systematic Investment Plans (SIPs) can be excellent opportunities to accumulate wealth. While both are popular long-term investment options, one is a government-backed savings scheme, and the other is a market-linked investment plan. But which one aligns best with your financial goals and capacity? What are their annual return rates? Which option can provide a higher return on an annual investment of Rs 1,30,000? In this article, we will explain and compare both options through calculations.
PPF - A government-backed savings scheme
SIP - A market-linked investment plan
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SIP vs PPF: Basic Differences
SIP | PPF |
| Can invest depending on financial capacity | Can invest up to Rs 1.5 lakh per year |
| Flexibility to invest monthly, quarterly, or annual basis | Maturity period is 15 years |
| Average long-term return is around 12% | Offers interest rate of 7.1% percent per annum |
Can you guess how much corpus you will have after 15 years in both investments if you invest Rs 1,30,000 annually? Let's find out.
SIP Investment Calculation: How much corpus will you generate in 15 years with Rs 1,30,000 annual investment?
If you invest Rs 1,30,000 per year ( Rs 10,833.33 per month), your total investment over 15 years will amount to Rs 19,49,940. Assuming an average annual return of 12 per cent, your corpus at the end of 15 years would be approximately Rs 54,66,072, including Rs 35,16,132 as capital gains.
PPF Investment Calculation: How much will corpus you generate in 15 years with Rs 1,30,000 annual investment?
If you invest Rs 1,30,000 per year in a PPF, your total investment over 15 years will also be Rs 19,50,000. However, with an annualised return of 7.1 per cent, the interest earned would amount to Rs 15,75,781. The final corpus would grow to around Rs 35,25,781 (the sum of both the principal and the interest).
Investment Summary (Figures in Rupees)
| Investment Type | Total Investment (15 years) | Capital Gain | Final Corpus |
| SIP | 19,50,000 (approx) | 35,16,132 | 54,66,072 |
| PPF | 19,50,000 | 15,75,781 | 35,25,781 |
SIP Investment Summary -
| Year | SIP Amt / Month | Total Invested Amt | Interest Amt / Year | Maturity Value |
| Year1 | 10,833 | 1,29,996 | 8,767 | 1,38,763 |
| Year2 | 10,833 | 2,59,992 | 35,134 | 2,95,126 |
| Year3 | 10,833 | 3,89,988 | 81,330 | 4,71,318 |
| Year4 | 10,833 | 5,19,984 | 1,49,873 | 6,69,857 |
| Year5 | 10,833 | 6,49,980 | 2,43,595 | 8,93,575 |
| Year6 | 10,833 | 7,79,976 | 3,65,690 | 11,45,666 |
| Year7 | 10,833 | 9,09,972 | 5,19,756 | 14,29,728 |
| Year8 | 10,833 | 10,39,968 | 7,09,849 | 17,49,817 |
| Year9 | 10,833 | 11,69,964 | 9,40,537 | 21,10,501 |
| Year10 | 10,833 | 12,99,960 | 12,16,969 | 25,16,929 |
| Year11 | 10,833 | 14,29,956 | 15,44,946 | 29,74,902 |
| Year12 | 10,833 | 15,59,952 | 19,31,006 | 34,90,958 |
| Year13 | 10,833 | 16,89,948 | 23,82,514 | 40,72,462 |
| Year14 | 10,833 | 18,19,944 | 29,07,772 | 47,27,716 |
| Year15 | 10,833 | 19,49,940 | 35,16,132 | 54,66,072 |
PPF Investment Summary -
| Year of deposit | Amount deposited | Interest earned | Year-end Balance |
| 1 year | Rs 1,30,000 | Rs 9,230 | Rs 1,39,230 |
| 2 years | Rs 2,60,000 | Rs 28,346 | Rs 2,88,346 |
| 3 years | Rs 3,90,000 | Rs 58,048 | Rs 4,48,048 |
| 4 years | Rs 5,20,000 | Rs 99,090 | Rs 6,19,090 |
| 5 years | Rs 6,50,000 | Rs 1,52,275 | Rs 8,02,275 |
| 6 years | Rs 7,80,000 | Rs 2,18,467 | Rs 9,98,467 |
| 7 years | Rs 9,10,000 | Rs 2,98,588 | Rs 12,08,588 |
| 8 years | Rs 10,40,000 | Rs 3,93,627 | Rs 14,33,627 |
| 9 years | Rs 11,70,000 | Rs 5,04,645 | Rs 16,74,645 |
| 10 years | Rs 13,00,000 | Rs 6,32,775 | Rs 19,32,775 |
| 11 years | Rs 14,30,000 | Rs 7,79,232 | Rs 22,09,232 |
| 12 years | Rs 15,60,000 | Rs 9,45,317 | Rs 25,05,317 |
| 13 years | Rs 16,90,000 | Rs 11,32,424 | Rs 28,22,424 |
| 14 years | Rs 18,20,000 | Rs 13,42,047 | Rs 31,62,047 |
| 15 years | Rs 19,50,000 | Rs 15,75,782 | Rs 35,25,782 |
Key Considerations:
- SIPs are market-linked, meaning returns are not guaranteed. The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
- PPF offers guaranteed returns, but the interest rate is fixed and lower than that of SIPs.
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