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PPF vs SIP with Rs 1,11,111/year investment: Which can create higher corpus in 15 years?
- Written by Priya Vishwakarma
Published: Zee Business| Updated: Zee Business
SIP vs PPF Comparison: For long-term investments, there are a lot of schemes and options available in the market that can help a person accumulate wealth for their future financial needs. Two of them are SIP (Systematic Investment Plan) and PPF (Public Provident Fund). As we know, both are long-term investment options, but it should be noted that they differ from each other in various aspects such as maximum and minimum investment amount, maturity period, etc.
SIP: It is a mutual fund investment option that is linked to the stock market and allows investors to invest a fixed amount at regular intervals. To start investing, people can invest as little as Rs 500 per month. While there is no maximum investment limit. Moreover, there is no lock-in period, so investors can make their own choice, but the risk level is higher.
PPF: This is a government-backed scheme, so it offers guaranteed returns. This is why it is considered a safe investment. Moreover, investors can invest their money on a yearly basis and get stable returns. The minimum investment amount per financial year is Rs 500. The maximum investment amount is Rs 1.5 lakh per year. Plus, a maximum of Rs 1.5 lakh can be invested per year.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning.)
1/9
PPF Vs SIP: Assuming return rate
1/9For calculations, we're assuming a 12 per cent annual rate of return. While PPF is a government scheme that offers a fixed interest rate of 7.1 per cent.
2/9
SIP investment with Rs 1,11,111 annually: How much money do you need to invest every month?
2/9As per the calculations, if you invest approximately Rs 9,259 every month or Rs 1,11,111 annually for 15 years, the total investment will be around Rs 16,66,620.
3/9
SIP investment with Rs 1,11,111 annually: How much capital gain can be earned after 15 years?
3/9Capital gains of approximately Rs 27,40,029 can be earned in 15 years.
4/9
SIP investment of Rs 1,11,111 annually: How much money can I get after 15 years in SIP?
4/9The total corpus generated at the end of 15 years would be approximately Rs 44,06,649.
5/9
SIP investment calculations (with 12% annual interest rate):
5/9Monthly investment: Rs 9,259 Total investment (15 years): Rs 16,66,620 Estimated returns: Rs 27,40,029 Total value: Rs 44,06,649
6/9
PPF investment of Rs 1,11,111 annually: Total amount to be invested in 15 years
6/9As per the calculations, if you invest Rs 1,11,111 annually for 15 years, the total investment will be around Rs 16,66,665 (almost the same as you are investing in SIP above).
7/9
PPF investment of Rs 1,11,111 annually: How much interest will be earned after 15 years?
7/9An interest of Rs 13,46,820 will be earned in 15 years.
8/9
PPF investment of Rs 1,11,111 annually: How much money can I get after 15 years in PPF?
8/9The final corpus generated at the end of 15 years will be Rs 30,13,485.
9/9
PPF investment calculations (with 7.1% annual interest rate):
9/9Annual Investment: Rs 1,11,111 Total Investment (15 years): Rs 16,66,665 Estimated Returns: Rs 13,46,820 Total Corpus: Rs 30,13,485
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