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SIP vs PPF: By readying strategically and knowing the powerfulness of investing, anyone tin physique a financially unchangeable future. Whether you commencement with smaller amounts implicit a longer play oregon marque larger contributions implicit a shorter term, the cardinal is consistency. If you're looking for coagulated concern options, you whitethorn see Public Provident Funds (PPF) oregon Systematic Investment Plans (SIPs).
SIP vs PPF: Key Features
| SIP | PPF |
| Market-linked concern plan | Government-backed savings scheme |
| Fixed monthly contributions | Can put up to Rs 1.5 lakh per year |
| Can put monthly, quarterly, oregon annually based connected your fiscal capacity | Maturity play is 15 years |
| Average semipermanent instrumentality is astir 12% | Offers an involvement complaint of 7.1% per annum |
Can you conjecture however overmuch corpus you volition person aft 15 years successful some investments if you put Rs 60,000 per year? Let's find out.
SIP Investment Calculation: How overmuch corpus volition you make successful 15 years with Rs 60,000 yearly investment?
If you put Rs 60,000 per twelvemonth (Rs 5,000 per month), your full concern implicit 15 years volition magnitude to Rs 9,00,000. Assuming an mean yearly instrumentality of 12 per cent, your corpus astatine the extremity of 15 years would beryllium astir Rs 25,22,880, including Rs 16,22,880 arsenic superior gains.
PPF Investment Calculation: How overmuch volition corpus you make successful 15 years with Rs 1,20,000 yearly investment?
If you put Rs 60,000 per twelvemonth successful a PPF, your full concern implicit 15 years volition besides beryllium Rs 9,00,000. However, with an annualised instrumentality of 7.1 per cent, the involvement earned would magnitude to Rs 7,27,284. The last corpus would turn to astir Rs 16,27,284 (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 | 9,00,000 | 16,22,880 | 25,22,880 |
| PPF | 9,00,000 | 7,27,284 | 16,27,284 |
SIP Investment Summary -
| Year | SIP Amt / Month |
Total Invested Amt |
Interest Amt / Year |
Maturity Value |
| Year1 | 5,000 | 60,000 | 4,047 | 64,047 |
| Year2 | 5,000 | 1,20,000 | 16,216 | 1,36,216 |
| Year3 | 5,000 | 1,80,000 | 37,538 | 2,17,538 |
| Year4 | 5,000 | 2,40,000 | 69,174 | 3,09,174 |
| Year5 | 5,000 | 3,00,000 | 1,12,432 | 4,12,432 |
| Year6 | 5,000 | 3,60,000 | 1,68,785 | 5,28,785 |
| Year7 | 5,000 | 4,20,000 | 2,39,895 | 6,59,895 |
| Year8 | 5,000 | 4,80,000 | 3,27,633 | 8,07,633 |
| Year9 | 5,000 | 5,40,000 | 4,34,108 | 9,74,108 |
| Year10 | 5,000 | 6,00,000 | 5,61,695 | 11,61,695 |
| Year11 | 5,000 | 6,60,000 | 7,13,074 | 13,73,074 |
| Year12 | 5,000 | 7,20,000 | 8,91,261 | 16,11,261 |
| Year13 | 5,000 | 7,80,000 | 10,99,656 | 18,79,656 |
| Year14 | 5,000 | 8,40,000 | 13,42,090 | 21,82,090 |
| Year15 | 5,000 | 9,00,000 | 16,22,880 | 25,22,880 |
PPF Investment Summary -
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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