PPF VS SIP Vs NPS: Big News! Ready to invest Rs 10000 per month? you will soon become a millionaire, know details

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Tax Saving FD Interest Rate: Big news! These banks are giving up to 6.75 percent interest rate on tax saving FD, see bank list
Tax Saving FD Interest Rate: Big news! These banks are giving up to 6.75 percent interest rate on tax saving FD, see bank list

There are also some safe options in the market, where you can gradually build up a huge corpus for the future by investing money in a disciplined manner. Among these, PPF, SIP and NPS are better options.



Best Savings Scheme:

In today’s era, the returns on small savings are continuously decreasing. On the other hand, there is a chance of getting high returns in equity schemes, but there is also risk. Therefore, being conservative investors, they do not want to take market risk by investing money in equities.

In such a situation, there are also some safe options, where you can gradually build a big corpus for the future by investing money in a disciplined manner. Among these, Public Provident Fund ie PPF, Systematic Investment Plan ie SIP and National Pension System ie NPS are better options. If the annual interest on PPF is 7.1 percent, then long-term returns in mutual fund SIP are being given in double digits. Whereas in the National Pension System, if you invest equally in equity and government security, then you can get 8 to 10 percent interest annually.

PPF Calculator

The maturity of PPF is 15 years. There is also an option to extend the PPF account for 5 to 5 years after maturity.

Calculator- 1

  • Monthly deposit: Rs 10,000
  • Rate of interest: 7.1 per cent p.a.
  • 15 years maturity amount: Rs 31.56 lakh
  • Total investment: Rs 18 lakh

Calculator- 2

Now from here onwards, the PPF account will have to be extended and continue investing 10 thousand monthly.

  • Monthly deposit: Rs 10,000
  • Rate of interest: 7.1 per cent p.a.
  • Amount: Rs 1 crore

SIP Calculator

Mutual fund SIP is also a better option for monthly investment. In this, you can invest a fixed amount every month. There are many mutual funds in the market, which have given 12 to 15 per cent CAGR returns over a long period. Here we have assumed an estimated return of 12 per cent per annum.

The calculator

  • Monthly Deposit: Rs 10000
  • Estimated Return: 12% p.a.
  • Duration of Investment: 20 Years
  • Total Amount: Rs 1 crore

NPS Calculator

National Pension System is a better option for retirement planning. In this also, the government gives the facility of monthly investment. Investment in this scheme can be started from 18 years. If you look at the return chart of the past days, then the return on NPS has been given at the rate of 10 percent per annum. Here, if we have bought a 40 percent annuity and the expected return on it is 6% per annum, then on a monthly investment of 10 thousand rupees, a fund of 1 crore will be ready in 23 years. While a total investment of 27.60 lakhs will have to be made.