PPF vs SIP: Exploring the Best Investment Option to Reach Financial Goals

Investing smartly has a track record of bringing in good returns quickly. But remember, investing is like a marathon, not a sprint. Those who stay calm during market ups and downs tend to make more money in the long run. If you follow clever investment strategies, you could build up a wealth of Rs 2 crore. Wondering if putting your money in PPF or something else can get you there? Keep reading to find out!

PPF vs SIP Exploring the Best Investment Option to Reach Financial Goals

PPF vs SIP: Which One is the Best Investment Choice

Financial experts recommend putting aside Rs 200 every day, or Rs 6,000 monthly, to build a sizable retirement fund.

Looking at it for a year, it’s Rs 72,000. If you decide to invest that, many folks prefer putting it in PPF. It’s safe, gives guaranteed returns, a sure income, and you also get a tax break of up to Rs 150,000.

For sure, PPF is a safe bet for good returns. But what PPF finds tricky, SIP can pull off, helping you reach Rs 2 crore.

Here’re The Calculations for Clear Understanding:

When Investing 15 Years in PPF:

Playing it safe, some investors prefer government-backed options like the Public Provident Fund (PPF). The cool part? No taxes on the money you put in, the interest it earns, or the total you get at the end. Toss in Rs 6,000 each month, and in a year, you’ve invested Rs 72,000.

By putting money in regularly, you’ll see it reach Rs 19,52,740 in just 15 years—the shortest time you can keep it in PPF.

When Investing in PPF for 20 Years:

Keep putting that money into PPF for 20 years, and you’ll have Rs 31,95,978. Stretch it for 5 more years, and it grows to Rs 49,47,847. PPF is a safe bet, though its interest rate changes every three months. We did the maths with the current rate at 7.1 percent.

Investing ₹6,000 in SIP Monthly

Investing in a mutual fund every month for 25 years with a 10 percent return will grow your money to Rs 80,27,342. Now, if you go for 30 years, it jumps even higher to Rs 1,36,75,952.

Also read:

How to Identify and Correct Discrepancies on Your Credit Report?

Investing in For the Target Value of ₹2 Cr

If you’re getting a 10 percent return on your investment, experts say it’s pretty standard. Dabble in diversified funds, and 12 percent returns are par for the course.

So, in 25 years, your money could be Rs 1,13,85,811, and stretch that to 30 years—it balloons to a whopping Rs 2,11,79,483.

Find Your Daily Dose of NEWS and Insights - Follow ViralBake on WhatsApp and Telegram

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

Related Articles

Back to top button

AdBlocker Detected

Please Disable Adblock To Proceed & Used This Website!