SIP vs PPF Comparison: Systematic Investment Plan and Public Provident Fund are both very popular among investors. Under PPF, your money gets locked for 15 years. Which means that you cannot withdraw money during this period. Today we will know which one gives more returns after investing in SIP and PPF for 15 years.
SIP vs PPF: A huge fund can be created by investing in both Public Provident Fund (PPF) and Systematic Investment Plan (SIP). PPF is a safe investment platform. On the other hand, the return received in mutual fund SIP depends on the fluctuations of the stock market. Therefore, it is considered less safe.
Both these schemes have become quite popular among investors. Mutual fund SIP has become quite famous among investors due to its better returns. In mutual fund SIP, you get an estimated return of 12 to 14 percent.
Whereas under PPF you get 7.1 percent return. Today we will know that if money is invested in both the schemes for 15 years, then in which you can get better return or which scheme is better for you
Which one will give you more returns if you invest for 15 years?
Under PPF, your money remains in a lock-in period of 15 years. Which means that you cannot withdraw this money before 15 years. Similarly, investing in mutual fund SIP will be beneficial only if you invest money in it for a long period.
If you invest in both for a period of 15 years, you will get better returns in mutual fund SIP. However, this return also depends on the fluctuations of the market. We have compared these two based on the estimated returns of 12 to 14 percent in mutual funds.
For example, suppose if you invest Rs 65,000 in a year in both mutual fund SIP and PPF, then at the rate of 7.1 percent return, you will get approximately Rs 17,62,891 in 15 years. Along with this, if the same money is invested in mutual fund SIP for 15 years, then you can get a return of Rs 27,32,784. This return is calculated according to the estimated return of 12 to 14 percent in mutual funds.
Rs 65,000 invested in 15 years will become Rs 9,75,000. At the same time, according to the 7.1 percent return of PPF, you will get Rs 7,87,891 as interest on Rs 9,75,000. In total, you will get Rs 17,62,891.
On the other hand, on an amount of Rs 9,75,000 in mutual funds, you will be given approximately Rs 17,57,904 as interest. Which means that in total, your fund of Rs 27,32,784 will be ready.
Most Read Articles:
- LIC Special Scheme: You will get Rs 12000 pension after retirement, know complete scheme
- ATM Withdrawals New Charges: Withdrawing cash from ATM will be expensive, RBI has increased charge, know new charges
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
