SIP vs. PPF: After 15 years, if you save ₹100 per day, you would get three times the returns. See computation here

 SIP vs. PPF: After 15 years, if you save ₹100 per day, you would get three times the returns. See computation here

SIP vs. PPF: After 15 years, if you save ₹100 per day, you would get three times the returns. See computation here

SIP vs. PPF: Make a commitment to yourself in the new year to save and invest in addition to generating income. This will assist you much. Find out here whether saving Rs 100 a day can provide greater returns via SIP or PPF.

SIP vs PPF: The new year will begin in a few days. We usually make a goal to do something significant and worthwhile at the beginning of each year. But sometimes, we are unable to finish things. Do not be discouraged if you experience anything similar in 2023. Rather, begin preparing for the future. In 2024, give yourself a unique type of present. In fact, you might make a self-promise to yourself that in 2024, you would not only save money but also invest it.

Remember, investment has a lot of advantages. This will assist you in establishing both financial stability and an emergency fund. People are now very interested in making PPF and SIP investments. If you believe that investing requires a large sum of money, you should realize that this is untrue. All it takes to begin investing is a daily savings of Rs 100.

SIP vs. PPF: Using this simple computation, you can determine which option, when investing over the long term, would provide more returns: SIP or PPF.

Can you expect to get double profits from PPF?

You may invest ₹3,000 per month and ₹36,000 annually if you save ₹100 every day. Your investment amount in 15 years will be Rs 5 lakh 40 thousand if you put Rs 36 thousand in PPF every year. Currently, a 7.1% interest rate is available for PPF accounts. Your return after 15 years, assuming a 7.1% interest rate, will be Rs 4 lakh 36,370. At the time of maturity, you will get ₹ 9,76,370, which is the sum of the investment plus interest.

How will the SIP come back?

In contrast, if you save aside Rs. 100 every day and put it in a SIP every month, you would have invested Rs. 5,40,000 over the course of 15 years. Since SIP typically yields a 12% return, this computation indicates that the maximum interest you might make would be ₹ 9,73,728. Additionally, you would get a total of Rs 15,13,728 at maturity. This is about three times, or 3x, the investment amount.

In other words, if you invest ₹ 5,40,000 in PPF, you would get ₹ 9,76,370 at maturity, or in the year 2039, after 15 years. On the other hand, you may profit ₹ 15,13,728 via investing in SIP. But please be aware that you should absolutely speak with a financial counselor before making a SIP investment. Cheers to your investing!