Compare Items
Please, add items to this compare group or choose not empty group
SIP vs PPF for Rs 1,50,000/year investment: Which can create higher corpus in 15 years?
Companies

SIP vs PPF for Rs 1,50,000/year investment: Which can create higher corpus in 15 years?


SIP vs PPF: Public Provident Fund (PPF) and Systematic Investment Plan (SIP) are two investment options for investors looking for disciplined and consistent ways to invest. Both options are suited for individuals who can afford to invest a fixed amount consistently over a longer period. However, one is a government-backed savings scheme, while the other is a market-linked investment plan. So, which one aligns best with your financial goals and capacity? What are their annual return rates? Which option can provide a higher return on an annual investment of Rs 1,50,000? In this article, we will explain and compare both options.

What is an SIP?

– A market-linked investment plan.
– Can invest based on financial capacity.
– Offers flexibility to invest monthly, quarterly, or annually.
– The average long-term return is around 12%.

What is a PPF?

– A government-backed savings scheme.
– Allows investment up to Rs 1.5 lakh per year.
– Maturity period is 15 years.
– Offers an interest rate of 7.1% per annum.

SIP vs PPF: How Much Will Your Investment Grow in 15 Years?

Can you guess how much corpus you will have after 15 years with an annual investment of Rs 1,50,000? Let’s find out.

SIP Investment Calculation: How Much Corpus Will You Generate in 15 Years with Rs 1,50,000 Annually?

If you invest Rs 1,50,000 per year (Rs 12,500 per month), your total investment over 15 years will amount to Rs 22,50,000. Assuming an average annual return of 12 per cent, your corpus at the end of 15 years would be approximately Rs 59,49,142, including Rs 36,99,142 as capital gains.

PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 1,50,000 Annually?

If you invest Rs 1,50,000 per year in a PPF, your total investment over 15 years will also amount to Rs 22,50,000. However, with an annualized return of 7.1 per cent, the interest earned would be Rs 18,18,209. The final corpus would grow to around Rs 40,68,209 (the sum of both the principal and interest).

Investment Summary (Figures in Rupees)

Investment Type Total Investment (15 years) Capital Gain Final Corpus
SIP 22,50,000 36,99,142 59,49,142
PPF 22,50,000 18,18,209 40,68,209

SIP Investment Summary –

Year SIP Amt /
Month		 Total Invested
Amt		 Interest Amt /
Year		 Maturity
Value
Year1 12,500 1,50,000 10,117 1,60,117
Year2 12,500 3,00,000 40,540 3,40,540
Year3 12,500 4,50,000 93,846 5,43,846
Year4 12,500 6,00,000 1,72,935 7,72,935
Year5 12,500 7,50,000 2,81,080 10,31,080
Year6 12,500 9,00,000 4,21,963 13,21,963
Year7 12,500 10,50,000 5,99,737 16,49,737
Year8 12,500 12,00,000 8,19,082 20,19,082
Year9 12,500 13,50,000 10,85,269 24,35,269
Year10 12,500 15,00,000 14,04,238 29,04,238
Year11 12,500 16,50,000 17,82,685 34,32,685
Year12 12,500 18,00,000 22,28,152 40,28,152
Year13 12,500 19,50,000 27,49,139 46,99,139
Year14 12,500 21,00,000 33,55,224 54,55,224
Year15 12,500 22,50,000 40,57,200 63,07,200

PPF Investment Summary –

Year of deposit Amount deposited Interest earned Year end Balance
1 yr Rs 1,50,000 Rs 10,650 Rs 1,60,650
2 yr Rs 3,00,000 Rs 32,707 Rs 3,32,707
3 yr Rs 4,50,000 Rs 66,979 Rs 5,16,979
4 yr Rs 6,00,000 Rs 1,14,334 Rs 7,14,334
5 yr Rs 7,50,000 Rs 1,75,702 Rs 9,25,702
6 yr Rs 9,00,000 Rs 2,52,077 Rs 11,52,077
7 yr Rs 10,50,000 Rs 3,44,524 Rs 13,94,524
8 yr Rs 12,00,000 Rs 4,54,185 Rs 16,54,185
9 yr Rs 13,50,000 Rs 5,82,282 Rs 19,32,282
10 yr Rs 15,00,000 Rs 7,30,124 Rs 22,30,124
11 yr Rs 16,50,000 Rs 8,99,113 Rs 25,49,113
12 yr Rs 18,00,000 Rs 10,90,750 Rs 28,90,750
13 yr Rs 19,50,000 Rs 13,06,644 Rs 32,56,644
14 yr Rs 21,00,000 Rs 15,48,515 Rs 36,48,515
15 yr Rs 22,50,000 Rs 18,18,210 Rs 40,68,210

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.





Source link

Share: