PPF vs SIP: Where will you get more returns if you invest Rs 2000 every month for 15 years? Which one will make you rich?

PPF vs SIP: Everyone needs to save and invest a part of their income every month. This not only secures your future, but you can also accumulate a good fund. There are many options for investment, such as Fixed Deposit (FD), Post Office schemes, and Mutual Funds.

You can create a big fund by investing less money in two popular investment options - Public Provident Fund (PPF) and Systematic Investment Plan (SIP). Let us tell you that if you invest Rs 2000 every month for 10 years, then which of PPF and SIP can give more returns?

This much fund will be created by investing Rs 2000 in PPF.

PPF is a government scheme that is available in post offices or banks. This is a safe investment method, which has a government guarantee. If you invest Rs 2000 every month, i.e., Rs 24,000 annually in PPF, then your total investment in 15 years will be Rs 1,80,000. Currently, PPF offers an interest rate of 7.1%. According to this, after 15 years, you will have a total of Rs 6,50,913 in your account. That is, you will get a profit of Rs 2,90,913 on an investment of Rs 3,60,000. The advantage of PPF is that there is absolutely no risk in it, and the return is fixed. Also, a tax exemption is available in it.

This much fund will be created by investing in an SIP.

SIP is a way of investing in mutual funds, where you invest a little money every month. If you also invest Rs 2000 every month in SIP, then your total investment in 15 years will be Rs 45,00,000.

But the return in SIP depends on the market. If we assume that you get an average rate of return of 12%, then after 15 years, you can get a total of Rs 1,18,98,285. That is, your investment of Rs 45,00,000 will yield a profit of Rs 73,98,285.

The returns in SIP can be higher than PPF, but it involves market risk. If the market performs well, the returns can be high, but there can also be losses if there is a decline.

So, if you want to avoid risk and want safe returns with tax exemption, then PPF is better. But if you can take a little risk and expect higher returns, then SIP is a great option. Which of the two to choose depends on your needs and risk-taking ability. In PPF, after 15 years, you will get Rs 6.50 lakh, while in SIP you can get up to Rs 1,18,98,285. Before investing, understand your financial situation and goals well.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.