SIP vs PPF: Which Investment Yields Higher Returns?
For those seeking long-term investment avenues, Systematic Investment Plans (SIP) and Public Provident Fund (PPF) are two popular choices. But which one will help you build a larger corpus over time? Let’s delve into this with an example of an annual investment of Rs 1,25,000 over 15 years.
Understanding SIP and PPF
SIP allows you to invest a fixed amount in mutual funds at regular intervals, whereas PPF is a government-backed savings scheme that offers fixed returns. Both have their merits, but their growth trajectories can be quite different.
Calculating the Returns
Assuming an average annual return of 12% for SIPs and a fixed interest rate of 7.1% for PPF, let’s crunch the numbers:
- SIP Investment: Investing Rs 1,25,000 annually for 15 years at 12% returns can yield a corpus of approximately Rs 49,00,000.
- PPF Investment: Investing the same amount in PPF at 7.1% will lead to a corpus of roughly Rs 28,00,000.
The Verdict
Clearly, the SIP route offers a significantly higher return compared to PPF over the same investment period. However, it’s important to consider your risk appetite and investment goals before making a decision.
Why Choose Looffers.com?
For personalized investment advice and options, head over to Looffers.com. Our platform provides tailored solutions to help you make informed financial decisions.
In conclusion, while SIPs may provide higher returns, PPF remains a safe and secure option. Choose wisely based on your financial goals!
