SIP vs PPF: If you are looking for long-term investment ideas then you can consider the Public Provident Fund (PPF) and Systematic Investment Plan (SIP). Both are disciplined and consistent investment options that help to accumulate a substantial corpus for financial goals. In this write-up, we will compare these two options and understand with an example which option gives higher returns on an annual investment of Rs 1,20,000.

What is an SIP?

– Investment option linked with stock market
– Investment Flexibility
– Long-term return is 12 per cent

What is a PPF?

– Government-backed long-term savings scheme 
– Can invest up to Rs 1.5 lakh/year
– Interest rate is 7.1 per cent/yr 

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

Suppose, you are investing Rs 1,20,000 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 1,20,000 Annually?

If you invest Rs 1,20,000 yearly in SIP (Rs 10,000 per month), your total investment will amount to Rs 18,00,000 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 50,45,760, including Rs 32,45,760 as capital gains.

PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 1,20,000 Annually?

If you invest Rs 1,20,000 per year in a PPF, your total investment over 15 years will also amount to Rs 18,00,000. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 14,49,567. With this, the final corpus would be around Rs 32,41,567 (principal + interest).

Investment Summary (Figures in Rupees)

SIP Investment Summary –

PPF Investment Summary –