SIP vs PPF for Rs 1,00,000/year investment: Which can create higher corpus in 15 years?

SIP vs PPF: Public Provident Fund (PPF) and Systematic Investment Plan (SIP) are two long-term investment ideas that help to accumulate a substantial corpus for your financial goals. But which suits you best? Let's find out with an example which option gives higher returns on an annual investment of Rs 1,00,000.

What is an SIP?

SIP is a market-linked investment option in which one can invest money based on their financial capacity. The scheme offers a long-term return of 7.1 per cent (average).

What is a PPF?

PPF is a government-backed long-term savings scheme in which one can invest up to Rs 1.5 lakh per year. The scheme offers an interest rate of 7.1 per cent annually and the maturity period is 15 years. 

SIP vs PPF: How Much Corpus You Can Generate in 15 Years?

Suppose, you are investing Rs 1,00,000 annually in both - SIP and PPF for 15 years. Now, can you guess how much corpus you can generate in these years? Find out here.

SIP Investment Calculation: How Much Corpus Will You Generate in 15 Years with Rs 1,00,000 Annually?

If you invest Rs 1,00,000 yearly in SIP (Rs 8,333 per month), your total investment will amount to Rs 14,99,940 in 15 years. Assuming an average annual return of 12 per cent, the total corpus generated at the end of 15 years would be approximately Rs 39,65,936, including Rs 24,65,996 as capital gains.

PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 1,00,000 Annually?

If you invest Rs 1,00,000 per year in a PPF, your total investment over 15 years will also amount to Rs 15,00,000. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 12,12,139. With this, the final corpus would be around Rs 27,12,139 (principal + interest).

Investment Summary (Figures in Rupees)

SIP Investment Summary -

PPF Investment Summary -