PPF is a government guaranteed scheme in which investment has to be made for a long time. PPF matures after 15 years. Whereas SIP is a market linked scheme, in which returns are not guaranteed, but there is an opportunity to earn more profits. Know where you will get more benefits.
PPF Vs SIP: Nowadays most of the people invest. However, people may have different preferences regarding investment options. Many people like to invest money in those schemes where they get guaranteed returns and the invested amount remains safe. At the same time, some people like to earn more profits by taking a little risk. PPF and Mutual Funds SIP, both are such schemes. PPF is a government guaranteed scheme in which investment has to be made for a long time.
PPF matures after 15 years. Whereas SIP is a market linked scheme, in which returns are not guaranteed, but there is an opportunity to earn more profits. You can run SIP for any length of time as per your wish and can withdraw money whenever you wish. However, long term SIP is considered a profitable deal. Let us tell you that if Rs 5000 is invested every month in both the schemes for 15 years, then how much money will be made in which one.
PPF
This government guaranteed scheme is currently giving returns of 7.1 percent. If you invest Rs 5000 every month in this scheme, then you will invest Rs 60,000 annually. In this case, you will invest a total of Rs 9,00,000 in 15 years. According to 7.1, you will get Rs 7,27,284 as interest and thus you will get a total of Rs 16,27,284 including interest on maturity.
SIP
Due to being market linked, investment in SIP is a bit risky, but according to financial experts, it gives an average interest of 12 percent. Sometimes the interest is even more than this. If you invest Rs 5000 every month in mutual funds through SIP, then you will invest Rs 60,000 in it annually and in 15 years you will invest a total of Rs 9,00,000.
In such a situation, if the calculation is done according to the average return of 12 percent, then you will get only Rs 16,22,880 as interest. That means, the amount of money you will get in PPF on maturity, you can get almost that much only from interest. In such a situation, after 15 years you will get a total of Rs 25,22,880 including the invested amount and interest amount. If the return is better than 12 percent, then this amount can be more than this.
