PPF vs SIP: If you invest Rs 10K a month, how much you may get after 15 years? Know calculations

PPF Vs SIP: People who want to see their money grow in the long term like to invest. However, people may have different preferences regarding investment options. Many people like to invest money in those schemes where they get guaranteed returns and the invested amount remains safe.

At the same time, some people like to earn more profits by taking a little risk.

PPF and Mutual Funds SIP, both can help your money grow, but both are different in nature.

PPF is a government scheme that offers guaranteed returns, while mutual fund investmet through SIP is a market-linked programme. 

PPF matures after 15 years and you can calculate how much money you will get after maturity.

In SIP, returns are not guaranteed, but SIPs have given good returns in the last few years and a lot of mutual fund investors are opting for SIPs.

You can run SIP for any length of time as per your wish and can withdraw money whenever you wish.

However, long-term SIP is considered a profitable deal.

Let us tell you that if Rs 5000 is invested every month in both the schemes for 15 years, how much money can be accumulated.

PPF

This government guaranteed scheme is currently giving returns of 7.1 per cent.

If you invest Rs 10000 every month in this scheme, then you will invest Rs 120,000 annually.

In this case, you will invest a total of Rs 18,00,000 in 15 years.

According to 7.1 per cent interest rate, you will get Rs 14,54,567 as interest and thus you will get a total of Rs 32,54,567 including interest on maturity.

SIP

Due to being market-linked, investment in SIP is a bit risky, but according to financial experts, it gives an average return of 12 per cent in the last few years.

Sometimes the interest is much more than that.

If you invest Rs 10000 every month in mutual funds through SIP, then you will invest Rs 120,000 in it annually and in 15 years you will invest a total of Rs 18,00,000.

In such a situation, if the calculation is done according to an average return of 12 per cent, you will get only Rs 32,45,760 as capital gains.

That means, the amount of money you will get in PPF on maturity, you can get almost that much only from capital gains.

In such a situation, after 15 years you will get a total return of Rs 5045760. If the return is better than 12 per cent, then this amount can be more than this.