SIP vs PPF: For those who are looking for long-term investment ideas, the Public Provident Fund (PPF) and Systematic Investment Plan (SIP) can be good options. One is a government backed scheme, while the other one is a market-linked investment option. Both offer different interest rates. But which one suits you best? Let’s find out, with an example, which option gives higher returns on an annual investment of Rs 1,25,000.
| SIP | PPF |
| Market-linked investment option | Government-backed long-term savings scheme |
| Invest money based on their financial capacity | One can invest up to Rs 1.5 lakh per year |
| Offers long-term return of 7.1% | Offers interest rate of 7.1% |
| Flexibility to invest monthly, quarterly, yearly | Maturity period is 15 years |
SIP vs PPF: How Much Corpus You Can Generate in 15 Years?
Suppose, you are investing Rs 1,25,000 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 1,25,000 Annually?
If you invest Rs 1,25,000 yearly in SIP (Rs 10,416 per month), your total investment will amount to Rs 18,74,880 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 52,55,664, including Rs 33,80,784 as capital gains.
PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 1,25,000 Annually?
If you invest Rs 1,25,000 per year in a PPF, your total investment over 15 years will also amount to Rs 18,75,000. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 15,15,000. With this, the final corpus would be around Rs 33,90,000 (principal + interest).
Investment Summary (Figures in Rupees)
| Investment Type | Total Investment (15 years) | Capital Gain | Final Corpus |
| SIP | 18,75,000 | 33,80,784 | 52,55,664 |
| PPF | 18,75,000 | 15,15,000 | 33,90,000 |
SIP Investment Summary –
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