SIP vs. PPF: In today’s world, everyone wants to save their earnings. Even if their efforts fail, everyone thinks about saving. This is the most important initiative. In fact, only saved money comes in handy when an emergency arises. Currently, there are many investment options in the market. Today, we are going to tell you about two of the safest options: SIP and PPF. By learning about both, you can learn how to build a fund worth lakhs in 15 years by investing 90 thousand rupees annually.
Saving funds for the future doesn’t always require a large sum. By investing small amounts regularly, you can accumulate a substantial amount in the long term. Both are excellent methods of regular investment, but their risk, returns, and flexibility differ. If you invest in a SIP, you can earn up to 12% returns. You need to invest ₹7,500 monthly. This translates to an annual investment of ₹90,000.
How much money will you earn from a SIP?
If you invest ₹7,500 monthly for 15 years, you’ll earn a return of approximately 12%. The total corpus will reach approximately ₹37.8 lakh. At this point, you’ll invest a total of ₹13.5 lakh. This means the money triples due to compounding.
Read Here: JNVST Admit Card 2025 Out! Download Navodaya Class 6 Hall Ticket Now from This Direct Link
How much money will you earn from a PPF?
If you invest ₹90,000 annually in a PPF, the interest rate will add up to ₹24.4 lakh after 15 years, at a rate of 7.1%. The total investment is ₹13.5 lakh. However, due to the fixed interest rate, the returns are limited. This means that the return from a SIP is higher than from a PPF