SIP Vs PPF Comparison: Which one will get better returns in 15 years investment? Know the calculation and what is better for you

When it comes to securing the future and growing wealth, the two most popular names that come to every investor’s mind are – the first is PPF (Public Provident Fund) and the second one is SIP (Systematic Investment Plan). A period of 15 years is generally considered an ideal time to accomplish financial goals. But the biggest and common question remains that if we invest continuously for 15 years, which scheme will give us the maximum and safest funds? Let us understand its complete mathematics through data.

1. PPF: Safe investment and guaranteed returns

PPF is a very popular and completely safe savings scheme of the Government of India, which has a mandatory ‘lock-in period’ of 15 years.

• Interest Rate: At present the government is giving interest on it at the rate of 7.1% per annum.

• Tax Benefits: This scheme comes under EEE (Exempt-Exempt-Exempt) category, that is, the investment made in it, the interest received and the entire maturity amount are fully paid. tax-free it occurs.

• risk: There is no market risk (Zero Risk) in this, due to which your principal and interest remain completely safe.

2. SIP: Inflation beating and strong returns

Through SIP in mutual funds, you invest a fixed small amount every month in stock market related schemes. Although it is subject to market risks, history shows that it proves to be the best wealth creator in the long run.

• Estimated Returns: According to financial experts, equity mutual funds have an average return over a long period of 15 years. 12% per annum or more There is hope of getting returns of Rs.

• Tax: Capital gains tax is payable on profits from SIP as per the rules.

Calculation on investment of ₹10,000 per month in 15 years

Let us assume that every month you ₹10,000 i.e. annually ₹1,20,000 Let’s invest. Your total investment in 15 years ₹18,00,000 will be. Let us see what will be the final return of this investment:

Conclusion: What is better for you?

It is clear from these figures that in a period of 15 years SIP You will get closer than PPF ₹18 lakh more Can give returns. If you do not want to take any risk and prefer tax-free guaranteed returns, then PPF is a great option for you. But if you want to grow your money faster by beating inflation, then investing in SIP will prove to be a wiser decision.