SIP vs PPF: For individuals who want to build a substantial corpus over the next 15 years and are looking for a good investment option, investing in Public Provident Funds (PPF) or Systematic Investment Plans (SIPs) can be considered. Both are popular long-term investment options. However, PPF is a government-backed savings scheme, while SIP is a market-linked investment plan.

SIP vs PPF: Basic Differences

• In an SIP, one can invest monthly, quarterly, or annually, depending on their financial capacity. The average long-term return from SIPs is around 12 percent.
• In PPF, one can invest up to Rs 1.5 lakh per year, and the maturity period is 15 years. It offers an interest rate of 7.1 percent per annum.

Can you guess how much corpus you will have after 15 years in both investments if you invest Rs 80,000 per year? Let’s find out.

SIP Investment Calculation: How much corpus will you generate in 15 years with Rs 80,000 annual investment?

If you invest Rs 80,000 per year (Rs 6,666 per month), your total investment over 15 years will amount to Rs 11,99,880. Assuming an average annual return of 12 per cent, your corpus at the end of 15 years would be approximately Rs 33,63,504, including Rs 21,63,624 as capital gains.

PPF Investment Calculation: How much will corpus you generate in 15 years with Rs 80,000 annual investment?

If you invest Rs 80,000 per year in a PPF, your total investment over 15 years will also be Rs 12,00,000. However, with an annualised return of 7.1 per cent, the interest earned would amount to Rs 9,69,712. The final corpus would grow to around Rs 21,69,712 (the sum of both the principal and the interest).

Investment Summary (Figures in Rupees)

Investment Type	Total Investment (15 years)	Capital Gain	Final Corpus
SIP	12,00,000	21,63,624	33,63,504
PPF	12,00,000	9,69,712	21,69,712

SIP Investment Summary –

Year	SIP Amt / Month	Total Invested Amt	Interest Amt / Year	Maturity Value
Year1	6,666	79,992	5,395	85,387
Year2	6,666	1,59,984	21,619	1,81,603
Year3	6,666	2,39,976	50,046	2,90,022
Year4	6,666	3,19,968	92,223	4,12,191
Year5	6,666	3,99,960	1,49,894	5,49,854
Year6	6,666	4,79,952	2,25,024	7,04,976
Year7	6,666	5,59,944	3,19,828	8,79,772
Year8	6,666	6,39,936	4,36,800	10,76,736
Year9	6,666	7,19,928	5,78,752	12,98,680
Year10	6,666	7,99,920	7,48,852	15,48,772
Year11	6,666	8,79,912	9,50,670	18,30,582
Year12	6,666	9,59,904	11,88,229	21,48,133
Year13	6,666	10,39,896	14,66,061	25,05,957
Year14	6,666	11,19,888	17,89,274	29,09,162
Year15	6,666	11,99,880	21,63,624	33,63,504

PPF Investment Summary –

Year of deposit	Amount deposited	Interest earned	Year end Balance
1yr	₹80,000	₹5,680	₹85,680
2yr	₹1,60,000	₹17,444	₹1,77,444
3yr	₹2,40,000	₹35,722	₹2,75,722
4yr	₹3,20,000	₹60,978	₹3,80,978
5yr	₹4,00,000	₹93,708	₹4,93,708
6yr	₹4,80,000	₹1,34,441	₹6,14,441
7yr	₹5,60,000	₹1,83,746	₹7,43,746
8yr	₹6,40,000	₹2,42,232	₹8,82,232
9yr	₹7,20,000	₹3,10,551	₹10,30,551
10yr	₹8,00,000	₹3,89,400	₹11,89,400
11yr	₹8,80,000	₹4,79,527	₹13,59,527
12yr	₹9,60,000	₹5,81,734	₹15,41,734
13yr	₹10,40,000	₹6,96,877	₹17,36,877
14yr	₹11,20,000	₹8,25,875	₹19,45,875
15yr	₹12,00,000	₹9,69,712	₹21,69,712

Key Considerations:

– SIPs are market-linked, meaning returns are not guaranteed. The 12 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
– PPF offers guaranteed returns, but the interest rate is fixed and lower than that of SIPs.