Yamaha Motor2 hrs ago
SIP vs PPF for Rs 65,000/year investment: Which can create higher corpus in 15 years?
Written By Priya Vishwakarma
Published: 5:07 PM, Mar 25, 2025 | Updated: 5:15 PM, Mar 25, 2025
SIP vs PPF: Systematic Investment Plan and Public Provident Fund are two long-term investment options that can generate a substantial corpus. Let's learn about them and compare their return for an investment of Rs 65,000 per year over 15 years.
If you invest Rs 65,000 yearly in SIP, your total investment will amount to Rs 9,74,880 in 15 years.
SIP vs PPF: When it comes to investing for long-term goals, some prefer risk-free schemes like the Public Provident Fund (PPF), while some take on risks and invest their money in a Systematic Investment Plan (SIP). Both differ in nature but help to generate a substantial corpus for post-retirement life. Let's learn more about them and compare their return for an investment of Rs 65,000 per year over 15 years.
| SIP | PPF |
| Market-linked investment option | Government-backed savings scheme |
| Can invest money based on financial capacity | Can invest maximum Rs 1.5 lakh per year |
| Offers average long-term return of 12% | Offers an interest rate of 7.1% |
| No lock-in period, investor gets to choose | Maturity and lock in period is 15 years |
| High Risk | Low risk |
SIP vs PPF: How Much Corpus Can You Generate in 15 Years?
Add Zee Business as a Preferred Source
Suppose you are investing Rs 65,000 annually in both - SIP and PPF. Now, can you guess how much corpus you can generate in 15 years? Let's calculate.
SIP Investment Calculation: How Much Corpus Will You Generate in 15 Years with Rs 65,000 Annual Investment?
If you invest Rs 65,000 yearly in SIP (Rs 5,416 per month), your total investment will amount to Rs 9,74,880 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 27,32,784, including Rs 17,57,904 as capital gains.
SIP Returns (with 12% annual interest rate):
- Monthly investment: Rs 5,416
- Total investment (15 years): Rs 9,74,880
- Estimated returns: Rs 17,57,904
- Total value: Rs 27,32,784
Also Read: Power of Compounding: How much corpus can you build in 25 years with Rs 25,000 monthly investment?
PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 65,000 Annual Investment?
If you invest Rs 65,000 per year in a PPF, your total investment over 15 years will also amount to Rs 9,75,000. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 7,87,891. With this, the final corpus would be around Rs 17,62,891 (principal + interest).
PPF Returns (with 7.1% annual interest rate):
- Annual Investment: Rs 65,000
- Total Investment (15 years): Rs 9,75,000
- Estimated Returns: Rs 7,87,891
- Total Corpus: Rs 17,62,891
SIP Investment Summary -
| Year | SIP Amt / Month | Total Invested Amt | Interest Amt / Year | Maturity Value |
| Year1 | 5,416 | 64,992 | 4,383 | 69,375 |
| Year2 | 5,416 | 1,29,984 | 17,565 | 1,47,549 |
| Year3 | 5,416 | 1,94,976 | 40,661 | 2,35,637 |
| Year4 | 5,416 | 2,59,968 | 74,929 | 3,34,897 |
| Year5 | 5,416 | 3,24,960 | 1,21,786 | 4,46,746 |
| Year6 | 5,416 | 3,89,952 | 1,82,828 | 5,72,780 |
| Year7 | 5,416 | 4,54,944 | 2,59,854 | 7,14,798 |
| Year8 | 5,416 | 5,19,936 | 3,54,892 | 8,74,828 |
| Year9 | 5,416 | 5,84,928 | 4,70,225 | 10,55,153 |
| Year10 | 5,416 | 6,49,920 | 6,08,428 | 12,58,348 |
| Year11 | 5,416 | 7,14,912 | 7,72,402 | 14,87,314 |
| Year12 | 5,416 | 7,79,904 | 9,65,414 | 17,45,318 |
| Year13 | 5,416 | 8,44,896 | 11,91,147 | 20,36,043 |
| Year14 | 5,416 | 9,09,888 | 14,53,752 | 23,63,640 |
| Year15 | 5,416 | 9,74,880 | 17,57,904 | 27,32,784 |
Also Read: Rs 19,999 SIP for 20 Years vs Rs 9,999 Step-up SIP for 30 years: Which can generate higher corpus?
PPF Investment Summary -
| Year of deposit | Amount deposited | Interest earned | Year end Balance |
| 1 year | Rs 65,000 | Rs 4,615 | Rs 69,615 |
| 2 years | Rs 1,30,000 | Rs 14,173 | Rs 1,44,173 |
| 3 years | Rs 1,95,000 | Rs 29,024 | Rs 2,24,024 |
| 4 years | Rs 2,60,000 | Rs 49,545 | Rs 3,09,545 |
| 5 years | Rs 3,25,000 | Rs 76,138 | Rs 4,01,138 |
| 6 years | Rs 3,90,000 | Rs 1,09,234 | Rs 4,99,234 |
| 7 years | Rs 4,55,000 | Rs 1,49,294 | Rs 6,04,294 |
| 8 years | Rs 5,20,000 | Rs 1,96,814 | Rs 7,16,814 |
| 9 years | Rs 5,85,000 | Rs 2,52,323 | Rs 8,37,323 |
| 10 years | Rs 6,50,000 | Rs 3,16,388 | Rs 9,66,388 |
| 11 years | Rs 7,15,000 | Rs 3,89,616 | Rs 11,04,616 |
| 12 years | Rs 7,80,000 | Rs 4,72,659 | Rs 12,52,659 |
| 13 years | Rs 8,45,000 | Rs 5,66,212 | Rs 14,11,212 |
| 14 years | Rs 9,10,000 | Rs 6,71,024 | Rs 15,81,024 |
| 15 years | Rs 9,75,000 | Rs 7,87,891 | Rs 17,62,891 |
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning.)
Related Topics
RECOMMENDED
- 1
- 2
- 3
- 4
- 5
- 6