SIP vs PPF for 15 Years: Which Creates Higher Corpus on Rs 60,000 Yearly Investment? By planning strategically and understanding the power of investing, anyone can build a financially stable future. If you’re looking for solid investment options, you may consider Public Provident.
SIP vs PPF for 15 Years: Which One Creates a Higher Corpus on Rs 60,000/Yearly Investment?
In today’s fast-paced world, strategic investment is key to building a financially secure future. Two popular investment options in India are Systematic Investment Plans (SIPs) and the Public Provident Fund (PPF). If you’re considering investing Rs 60,000 annually, you’re probably wondering which option will yield a higher corpus over a 15-year period.
Understanding SIPs
SIPs allow you to invest a fixed amount regularly in mutual funds. The beauty of SIPs lies in the power of compounding, which can significantly enhance your returns over time. Assuming an average annual return of 12%, your Rs 60,000 yearly investment would grow substantially.
Using a SIP calculator, after 15 years, your investment could accumulate close to Rs 22.5 lakhs. This impressive figure highlights the potential of equity markets when invested wisely.
Diving into PPF
On the other hand, the Public Provident Fund (PPF) is a government-backed savings scheme that offers a fixed interest rate. As of now, the PPF interest rate stands at approximately 7.1% per annum. Investing Rs 60,000 every year in PPF for 15 years could yield around Rs 15.5 lakhs at maturity, given the power of compounding on the fixed interest.
SIP vs PPF: The Verdict
When comparing the two, it’s clear that SIPs have the potential to generate a higher corpus than PPF over a 15-year investment period, assuming market conditions are favorable. However, SIPs come with market risks, while PPF is a safe, government-backed option.
Ultimately, the choice between SIP and PPF depends on your risk appetite and investment goals. If you’re looking for higher returns and can tolerate some market volatility, SIPs may be the way forward. Conversely, if safety and guaranteed returns are your priority, PPF is an excellent choice.
Explore More Investment Options
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