SIP vs PPF for Rs 1,00,000/year investment: Which can create higher corpus in 15 years?

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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