SIP vs PPF: In the new year, promise yourself that along with earning money, you will also save and invest. You will get many benefits from this. Know here whether SIP or PPF will give better returns if you save Rs 100 daily.
SIP vs PPF: In a few days we are going to step into the new year. Usually, every year we keep a New Year resolution to achieve something good and big. However, sometimes we are not able to complete them. If something similar happens to you in the year 2023, then do not be disappointed. Instead, start planning for the future. Give yourself a special kind of gift in the year 2024. Actually, you can promise yourself that in 2024, along with saving money, you will also invest it.
Note, there are many benefits of investing money. This will help you in creating an emergency fund along with financial stability. At present people are very interested in investing in SIP and PPF. If you think that a huge amount is required for investment, then know that it is not so. You can start investing by saving only Rs 100 every day.
SIP vs PPF: Here you can understand with this easy calculation that which can give you better returns if you make long term investment in SIP or PPF.
Will you be able to get double returns from PPF?
By saving ₹100 every day, you can invest ₹3,000 every month and ₹36,000 in a year. If you invest Rs 36 thousand in PPF in a year, then your investment amount in 15 years will be Rs 5 lakh 40 thousand. At present an interest rate of 7.1% is being offered on PPF account. According to the interest rate of 7.1% in 15 years, your return will be Rs 4 lakh 36 thousand 370. On maturity, you will be given the investment amount and interest amount together, which will be a total of ₹ 9,76,370.
How will be the SIP returns?
On the other hand, if you save Rs 100 daily and invest it monthly in SIP, then you will invest a total of Rs 5,40,000 in 15 years. Generally SIP gives a return of 12%, so according to this calculation you can earn only interest of ₹ 9,73,728. At the same time, on maturity you will get a total of Rs 15,13,728. This is almost three times the investment amount i.e. 3x.
That is, if you invest ₹ 5,40,000 in PPF, after 15 years i.e. in the year 2039, you will get a maturity amount of ₹ 9,76,370. Whereas, if you invest in SIP then you can earn ₹ 15,13,728 from it. However, please note that before investing in SIP, definitely consult a financial advisor. Happy Investing!
