SIP vs PPF: For individuals who are in search of long-term funding concepts, the Public Provident Fund (PPF) and Systematic Funding Plan (SIP) may be good choices. One is a authorities backed scheme, whereas the opposite one is a market-linked funding possibility. Each supply totally different rates of interest. However which one fits you greatest? Let’s discover out, with an instance, which possibility provides larger returns on an annual funding of Rs 1,25,000.
| SIP | PPF |
| Market-linked funding possibility | Authorities-backed long-term financial savings scheme |
| Make investments cash primarily based on their monetary capability | One can make investments as much as Rs 1.5 lakh per 12 months |
| Gives long-term return of seven.1% | Gives rate of interest of seven.1% |
| Flexibility to take a position month-to-month, quarterly, yearly | Maturity interval is 15 years |
SIP vs PPF: How A lot Corpus You Can Generate in 15 Years?
Suppose, you might be investing Rs 1,25,000 yearly in each – SIP and PPF for 15 years. Now, are you able to guess how a lot corpus you possibly can generate in these years? Discover out right here.
SIP Funding Calculation: How A lot Corpus Will You Generate in 15 Years with Rs 1,25,000 Yearly?
Should you make investments Rs 1,25,000 yearly in SIP (Rs 10,416 per 30 days), your whole funding will quantity to Rs 18,74,880 in 15 years. Assuming a mean annual return of 12 per cent, the full corpus generated on the finish of 15 years can be roughly Rs 52,55,664, together with Rs 33,80,784 as capital positive aspects.
PPF Funding Calculation: How A lot Will Your Corpus Develop in 15 Years with Rs 1,25,000 Yearly?
Should you make investments Rs 1,25,000 per 12 months in a PPF, your whole funding over 15 years will even quantity to Rs 18,75,000. Nonetheless, with an annualised return of seven.1 per cent, the curiosity earned can be Rs 15,15,000. With this, the ultimate corpus can be round Rs 33,90,000 (principal + curiosity).
Funding Abstract (Figures in Rupees)
| Funding Kind | Whole Funding (15 years) | Capital Acquire | Last Corpus |
| SIP | 18,75,000 | 33,80,784 | 52,55,664 |
| PPF | 18,75,000 | 15,15,000 | 33,90,000 |
SIP Funding Abstract –
PPF Funding Abstract –
