SIP vs PPF: By investing Rs 70,000 annually in each, how much wealth can you create in 15 years?

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SIP vs PPF: Whether you are a salaried worker oregon an individual, it is indispensable for each idiosyncratic to program for their retirement. This helps an idiosyncratic to beryllium financially autarkic post-retirement. If you besides privation to accumulate a important corpus past you whitethorn take betwixt Public Provident Funds (PPF) oregon Systematic Investment Plans (SIPs). Both are fashionable semipermanent concern options. PPF is simply a government-backed savings scheme, and SIP is simply a market-linked concern plan.

What is SIP?

SIP communal funds is simply a market-linked concern program that allows investors to put periodically - monthly, quarterly, oregon annually based connected their fiscal capacity. The mean semipermanent instrumentality is astir 12 per cent.

What is PPF?

PPF oregon Public Provident Funds is simply a government-backed savings strategy wherever you tin put up to Rs 1.5 lakh per year, and the maturity play is 15 years. It offers an involvement complaint of 7.1 per cent per annum.

Can you conjecture however overmuch corpus you volition person aft 15 years successful some investments if you put Rs 70,000 per year? Let's find out.

SIP Investment Calculation: How overmuch corpus volition you make successful 15 years with Rs 70,000 yearly investment?

If you put Rs 70,000 per twelvemonth (Rs 5,833 per month), your full concern implicit 15 years volition magnitude to Rs 10,49,940. Assuming an mean yearly instrumentality of 12 per cent, your corpus astatine the extremity of 15 years would beryllium astir Rs 29,43,192, including Rs 18,93,252 arsenic superior gains.

PPF Investment Calculation: How overmuch volition corpus you make successful 15 years with Rs 70,000 yearly investment?

If you put Rs 70,000 per twelvemonth successful a PPF, your full concern implicit 15 years volition besides beryllium Rs 10,50,000. However, with an annualised instrumentality of 7.1 per cent, the involvement earned would magnitude to Rs 8,48,498. The last corpus would turn to astir Rs 18,98,498 (the sum of some the main and the interest).

Investment Summary (Figures successful Rupees)

Investment Type	Total Investment (15 years)	Capital Gain	Final Corpus
SIP	10,50,000	18,93,252	29,43,192
PPF	10,50,000	8,48,498	18,98,498

SIP Investment Summary -

Year	SIP Amt / Month	Total Invested Amt	Interest Amt / Year	Maturity Value
Year1	5,833	69,996	4,721	74,717
Year2	5,833	1,39,992	18,918	1,58,910
Year3	5,833	2,09,988	43,792	2,53,780
Year4	5,833	2,79,984	80,699	3,60,683
Year5	5,833	3,49,980	1,31,163	4,81,143
Year6	5,833	4,19,976	1,96,905	6,16,881
Year7	5,833	4,89,972	2,79,861	7,69,833
Year8	5,833	5,59,968	3,82,216	9,42,184
Year9	5,833	6,29,964	5,06,430	11,36,394
Year10	5,833	6,99,960	6,55,274	13,55,234
Year11	5,833	7,69,956	8,31,872	16,01,828
Year12	5,833	8,39,952	10,39,745	18,79,697
Year13	5,833	9,09,948	12,82,858	21,92,806
Year14	5,833	9,79,944	15,65,682	25,45,626
Year15	5,833	10,49,940	18,93,252	29,43,192

PPF Investment Summary -

Year of deposit	Amount deposited	Interest earned	Year extremity Balance
1yr	Rs70,000	Rs4,970	Rs74,970
2yr	Rs1,40,000	Rs15,263	Rs1,55,263
3yr	Rs2,10,000	Rs31,257	Rs2,41,257
4yr	Rs2,80,000	Rs53,356	Rs3,33,356
5yr	Rs3,50,000	Rs81,995	Rs4,31,995
6yr	Rs4,20,000	Rs1,17,636	Rs5,37,636
7yr	Rs4,90,000	Rs1,60,778	Rs6,50,778
8yr	Rs5,60,000	Rs2,11,953	Rs7,71,953
9yr	Rs6,30,000	Rs2,71,732	Rs9,01,732
10yr	Rs7,00,000	Rs3,40,725	Rs10,40,725
11yr	Rs7,70,000	Rs4,19,586	Rs11,89,586
12yr	Rs8,40,000	Rs5,09,017	Rs13,49,017
13yr	Rs9,10,000	Rs6,09,767	Rs15,19,767
14yr	Rs9,80,000	Rs7,22,641	Rs17,02,641
15yr	Rs10,50,000	Rs8,48,498	Rs18,98,498

Key Considerations:

- SIPs are market-linked, meaning returns are not guaranteed. The 12 per cent instrumentality mentioned supra is an estimate, and existent returns whitethorn alteration depending connected marketplace conditions.

- PPF offers guaranteed returns, but the involvement complaint is fixed and little than that of SIPs.

(Disclaimer: Our calculations are projections and not concern advice. Do your owed diligence oregon consult an adept for fiscal planning)

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