PPF vs SIP: Where to Invest Your Monthly Savings of Rs 10,000 for Higher Profit - Check the Calculation Here
When it comes to building wealth, every investor looks for the perfect balance between safety and growth. Some prefer steady, risk-free returns, while others are comfortable riding the market’s ups and downs for higher gains. Among the many long-term investment choices available today, Public Provident Fund (PPF) and Mutual Fund SIPs consistently top the list. But which of the two actually gives you the best results over time? Let’s decode both options in an easy and interesting way.
Lock-in period: 15 years
Current interest rate: 7.1%, revised periodically
Completely risk-free and ideal for long-term stability
If you invest ₹10,000 per month (₹1,20,000 per year) consistently for 15 years, your total contribution becomes ₹18 lakh. With the fixed interest rate, your PPF matures at ₹32.54 lakh, giving you a profit of ₹14.54 lakh. You don’t have to track the market or worry about fluctuations, your money grows quietly and safely.
For those who want real growth, mutual fund SIPs offer a dynamic alternative. SIPs work on the power of regular investment + compounding + market growth, making them ideal for wealth creation over long horizons.
If you invest ₹10,000 every month for 15 years, just like PPF, your total investment again comes to ₹18 lakh. But this time, with an assumed 12% annual return, your SIP can grow into a solid ₹47.59 lakh. That’s a whopping ₹29.59 lakh profit, almost double what PPF offers.
The answer depends entirely on your priority:
PPF is your secure locker, steady, reliable, worry-free.
SIP is your growth engine, faster, stronger, and more rewarding in the long run.
Ideally, a balanced investor keeps both in their financial portfolio. But if you're looking strictly at higher returns, Mutual Fund SIPs undeniably lead the race.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investment markets are subject to risks, and returns may vary based on market conditions. Please consult a certified financial advisor before making any investment decisions.
PPF: A Safe Haven for Conservative Investors
The Public Provident Fund has been a trusted option for decades. Backed by the government, it offers security, tax benefits, and guaranteed returns, making it a favourite for risk-averse investors.Key Highlights:
Maximum investment: ₹1.50 lakh per yearLock-in period: 15 years
Current interest rate: 7.1%, revised periodically
Completely risk-free and ideal for long-term stability
If you invest ₹10,000 per month (₹1,20,000 per year) consistently for 15 years, your total contribution becomes ₹18 lakh. With the fixed interest rate, your PPF matures at ₹32.54 lakh, giving you a profit of ₹14.54 lakh. You don’t have to track the market or worry about fluctuations, your money grows quietly and safely.
Mutual Fund SIP : A Smarter Route to Wealth Creation
For those who want real growth, mutual fund SIPs offer a dynamic alternative. SIPs work on the power of regular investment + compounding + market growth, making them ideal for wealth creation over long horizons.Why SIPs Shine:
- You can start with small amounts
- Long-term average returns of 12%
- Benefit from compounding and rupee-cost averaging
- Flexible, liquid, and market-driven
If you invest ₹10,000 every month for 15 years, just like PPF, your total investment again comes to ₹18 lakh. But this time, with an assumed 12% annual return, your SIP can grow into a solid ₹47.59 lakh. That’s a whopping ₹29.59 lakh profit, almost double what PPF offers.
PPF vs SIP : Which One Gives Better Returns?
The answer depends entirely on your priority: - If safety, stability, and guaranteed returns matter most, PPF is unbeatable.
- But if your aim is to build long-term wealth and you can handle moderate market risk, SIPs come out as the clear winner.
Both PPF and SIP are powerful long-term tools.
PPF is your secure locker, steady, reliable, worry-free.
SIP is your growth engine, faster, stronger, and more rewarding in the long run.
Ideally, a balanced investor keeps both in their financial portfolio. But if you're looking strictly at higher returns, Mutual Fund SIPs undeniably lead the race.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investment markets are subject to risks, and returns may vary based on market conditions. Please consult a certified financial advisor before making any investment decisions.
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