SIP vs PPF for Rs 1,20,000/12 months funding: Which might create greater corpus in 15 years?

SIP vs PPF: In case you are on the lookout for long-term funding concepts then you’ll be able to contemplate the Public Provident Fund (PPF) and Systematic Funding Plan (SIP). Each are disciplined and constant funding choices that assist to build up a considerable corpus for monetary targets. On this write-up, we’ll evaluate these two choices and perceive with an instance which choice provides greater returns on an annual funding of Rs 1,20,000.

What’s an SIP?

– Funding choice linked with inventory market
– Funding Flexibility
– Lengthy-term return is 12 per cent

What’s a PPF?

– Authorities-backed long-term financial savings scheme 
– Can make investments as much as Rs 1.5 lakh/12 months
– Rate of interest is 7.1 per cent/yr 

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

Suppose, you’re investing Rs 1,20,000 yearly in each – SIP and PPF for 15 years. Now, are you able to guess how a lot corpus you’ll be able to generate in these years? Discover out right here.

SIP Funding Calculation: How A lot Corpus Will You Generate in 15 Years with Rs 1,20,000 Yearly?

When you make investments Rs 1,20,000 yearly in SIP (Rs 10,000 per 30 days), your whole funding will quantity to Rs 18,00,000 in 15 years. Assuming a mean annual return of 12 per cent, the overall corpus generated on the finish of 15 years can be roughly Rs 50,45,760, together with Rs 32,45,760 as capital features.

PPF Funding Calculation: How A lot Will Your Corpus Develop in 15 Years with Rs 1,20,000 Yearly?

When you make investments Rs 1,20,000 per 12 months in a PPF, your whole funding over 15 years may also quantity to Rs 18,00,000. Nonetheless, with an annualised return of seven.1 per cent, the curiosity earned can be Rs 14,49,567. With this, the ultimate corpus can be round Rs 32,41,567 (principal + curiosity).

Funding Abstract (Figures in Rupees)

SIP Funding Abstract –

PPF Funding Abstract –