SIP vs PPF: Public Provident Fund (PPF) and Systematic Investment Plan (SIP) are two long-term investment ideas that help to accumulate a substantial corpus for your financial goals. But which suits you best? Let’s find out with an example which option gives higher returns on an annual investment of Rs 1,00,000.
What is an SIP?
SIP is a market-linked investment option in which one can invest money based on their financial capacity. The scheme offers a long-term return of 7.1 per cent (average).
What is a PPF?
PPF is a government-backed long-term savings scheme in which one can invest up to Rs 1.5 lakh per year. The scheme offers an interest rate of 7.1 per cent annually and the maturity period is 15 years.
SIP vs PPF: How Much Corpus You Can Generate in 15 Years?
Suppose, you are investing Rs 1,00,000 annually in both – SIP and PPF for 15 years. Now, can you guess how much corpus you can generate in these years? Find out here.
SIP Investment Calculation: How Much Corpus Will You Generate in 15 Years with Rs 1,00,000 Annually?
If you invest Rs 1,00,000 yearly in SIP (Rs 8,333 per month), your total investment will amount to Rs 14,99,940 in 15 years. Assuming an average annual return of 12 per cent, the total corpus generated at the end of 15 years would be approximately Rs 39,65,936, including Rs 24,65,996 as capital gains.
PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 1,00,000 Annually?
If you invest Rs 1,00,000 per year in a PPF, your total investment over 15 years will also amount to Rs 15,00,000. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 12,12,139. With this, the final corpus would be around Rs 27,12,139 (principal + interest).
Investment Summary (Figures in Rupees)
| Investment Type | Total Investment (15 years) | Capital Gain | Final Corpus |
| SIP | 15,00,000 | 24,65,996 | 39,65,936 |
| PPF | 15,00,000 | 12,12,139 | 27,12,139 |
SIP Investment Summary –
Year
SIP Amt /
Month
Total Invested
Amt
Interest Amt /
Year
Maturity
Value
Year1
8,333
99,996
6,744
1,06,740
Year2
8,333
1,99,992
27,026
2,27,018
Year3
8,333
2,99,988
62,561
3,62,549
Year4
8,333
3,99,984
1,15,286
5,15,270
Year5
8,333
4,99,980
1,87,379
6,87,359
Year6
8,333
5,99,976
2,81,297
8,81,273
Year7
8,333
6,99,972
3,99,809
10,99,781
Year8
8,333
7,99,968
5,46,033
13,46,001
Year9
8,333
8,99,964
7,23,484
16,23,448
Year10
8,333
9,99,960
9,36,122
19,36,082
Year11
8,333
10,99,956
11,88,409
22,88,365
Year12
8,333
11,99,952
14,85,375
26,85,327
Year13
8,333
12,99,948
18,32,686
31,32,634
Year14
8,333
13,99,944
22,36,727
36,36,671
Year15
8,333
14,99,940
27,04,692
42,04,632
PPF Investment Summary –
Year of deposit
Amount deposited
Interest earned
Year end Balance
1yr
Rs 1,00,000
Rs 7,100
Rs 1,07,100
2yr
Rs 2,00,000
Rs 21,805
Rs 2,21,805
3yr
Rs 3,00,000
Rs 44,653
Rs 3,44,653
4yr
Rs 4,00,000
Rs 76,223
Rs 4,76,223
5yr
Rs 5,00,000
Rs 1,17,135
Rs 6,17,135
6yr
Rs 6,00,000
Rs 1,68,051
Rs 7,68,051
7yr
Rs 7,00,000
Rs 2,29,683
Rs 9,29,683
8yr
Rs 8,00,000
Rs 3,02,790
Rs 11,02,790
9yr
Rs 9,00,000
Rs 3,88,188
Rs 12,88,188
10yr
Rs 10,00,000
Rs 4,86,750
Rs 14,86,750
11yr
Rs 11,00,000
Rs 5,99,409
Rs 16,99,409
12yr
Rs 12,00,000
Rs 7,27,167
Rs 19,27,167
13yr
Rs 13,00,000
Rs 8,71,096
Rs 21,71,096
14yr
Rs 14,00,000
Rs 10,32,344
Rs 24,32,344
15yr
Rs 15,00,000
Rs 12,12,140
Rs 27,12,140