SIP vs PPF: When it comes to investing, the Public Provident Fund (PPF) and Systematic Investment Plan (SIP) can be good choices for those looking for a disciplined and consistent investment option. Both are long-term investment plans, but which plan is more suitable for your investment goals? Let us compare the two and understand with an example which option gives higher returns on an annual investment of Rs 1,11,111.

What is an SIP?

– Investment option linked with the market
– Can invest money based on financial capacity
– Flexibility in investment (monthly, quarterly, or annually)
– Long-term return is 12 per cent (average)

What is a PPF?

– Government-backed long-term savings scheme 
– Can invest up to Rs 1.5 lakh/year
– Maturity period is 15 years
– Interest rate is 7.1 per cent (annual)

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

Suppose, you are investing Rs 1,11,111 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 1,11,111 Annually?

If you invest Rs 1,11,111 yearly in SIP (Rs 9259.25 per month), your total investment will amount to Rs 16,66,620 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 27,40,029, including Rs 44,06,649 as capital gains.

PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 1,11,111 Annually?

If you invest Rs 1,11,111 per year in a PPF, your total investment over 15 years will also amount to Rs 16,66,665. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 13,46,820. With this, the final corpus would be around Rs 30,13,485 (principal + interest).

Investment Summary (Figures in Rupees)

Investment Type	Total Investment (15 years)	Capital Gain	Final Corpus
SIP	16,66,620	30,05,249	46,71,869
PPF	16,66,665	13,46,820	30,13,485

SIP Investment Summary (Figures in Rupees) – 

 

Year	SIP Amt / Month	Total Invested Amt	Interest Amt / Year	Maturity Value
Year1	9,259	1,11,108	7,494	1,18,602
Year2	9,259	2,22,216	30,029	2,52,245
Year3	9,259	3,33,324	69,513	4,02,837
Year4	9,259	4,44,432	1,28,097	5,72,529
Year5	9,259	5,55,540	2,08,201	7,63,741
Year6	9,259	6,66,648	3,12,556	9,79,204
Year7	9,259	7,77,756	4,44,238	12,21,994
Year8	9,259	8,88,864	6,06,710	14,95,574
Year9	9,259	9,99,972	8,03,880	18,03,852
Year10	9,259	11,11,080	10,40,148	21,51,228
Year11	9,259	12,22,188	13,20,471	25,42,659
Year12	9,259	13,33,296	16,50,437	29,83,733
Year13	9,259	14,44,404	20,36,342	34,80,746
Year14	9,259	15,55,512	24,85,282	40,40,794
Year15	9,259	16,66,620	30,05,249	46,71,869

 

 

PPF Investment Summary (Figures in Rupees) –

 

Year of deposit	Amount deposited	Interest earned	years end Balance
1 year	Rs 1,11,111	Rs 7,889	Rs 1,19,000
2 years	Rs 2,22,222	Rs 24,227	Rs 2,46,449
3 years	Rs 3,33,333	Rs 49,614	Rs 3,82,947
4 years	Rs 4,44,444	Rs 84,692	Rs 5,29,136
5 years	Rs 5,55,555	Rs 1,30,150	Rs 6,85,705
6 years	Rs 6,66,666	Rs 1,86,723	Rs 8,53,389
7 years	Rs 7,77,777	Rs 2,55,203	Rs 10,32,980
8 years	Rs 8,88,888	Rs 3,36,433	Rs 12,25,321
9 years	Rs 9,99,999	Rs 4,31,320	Rs 14,31,319
10 years	Rs 11,11,110	Rs 5,40,833	Rs 16,51,943
11 years	Rs 12,22,221	Rs 6,66,009	Rs 18,88,230
12 years	Rs 13,33,332	Rs 8,07,962	Rs 21,41,294
13 years	Rs 14,44,443	Rs 9,67,883	Rs 24,12,326
14 years	Rs 15,55,554	Rs 11,47,047	Rs 27,02,601
15 years	Rs 16,66,665	Rs 13,46,821	Rs 30,13,486