SIP vs. PPF: Which one will yield the highest returns over 15 years if you invest ₹90,000 annually? Here's the full calculation..

Nowadays, everyone tries to save their earnings, even if they fail. More important than your monthly salary is how much savings you have and how much money you have available for emergencies. There are many investment options available in the market. Today, we're going to tell you about two of the safest options: SIP and PPF. Using data, we'll understand which scheme will yield the most returns over 15 years if you invest ₹90,000 annually.

Accumulating a substantial fund for the future doesn't always require a high salary or a large sum of money. Regularly investing small amounts can accumulate a substantial amount over the long term. Both are regular investment methods, but their risks, returns, and flexibility vary. We've assumed a SIP return of 12% per annum. This assumes an investment of ₹7,500 per month. Because the total investment is ₹90,000 annually.

How much fund will you get in SIP?
If you invest ₹7,500 every month in a SIP for 15 years, earning an average annual return of 12%, your total fund can reach approximately ₹37.8 lakh. During this period, you only invest ₹13.5 lakh, but due to compounding, your money grows almost threefold.

Funds in PPF
On the other hand, if you invest the same ₹90,000 annually in PPF, at an interest rate of 7.1%, your fund will grow to approximately ₹24.4 lakh after 15 years. Your total investment is also ₹13.5 lakh, but due to the fixed interest rate, the growth is limited. Thus, with the same investment, the SIP returns prove to be significantly higher than the PPF.

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