Long-Term Investment: Along with business, everyone desires to invest in a place that allows them to accumulate substantial funds. People prefer to choose the best option based on their needs. The Indian government operates several risk-free investment schemes. You may have heard of SIPs and PPFs. Investing here can secure your future.
If you’re considering investing in PPF and mutual fund SIPs, don’t delay. Understand the specifics of both schemes carefully. SIPs and PPFs are excellent schemes and offer strong returns. You can find important updates on the interest rates below.
Mutual Fund SIPs Offer Significant Benefits
Investors can accumulate substantial funds in a short period of time without any hassles. If you’re planning to build a substantial corpus through investments, mutual fund SIPs can be a beneficial option. Investing under these schemes also offers the benefit of compounding.
If market conditions are good, returns of up to 12% per year are possible. Mutual fund SIPs are also subject to risk, which is why returns can fluctuate.
PPF is also a good option
In addition to SIPs, the Public Provident Fund is also a good option. The maturity period is 15 years. Currently, PPF offers an interest rate of 7.1%. This interest rate can yield a substantial return. Furthermore, if a person makes a monthly SIP of Rs 10,000 for 15 years, their total investment will reach Rs 18 lakh.
At an assumed return rate of 12%, this amount could grow to approximately Rs 47.59 lakh. A potential profit of approximately Rs 29.59 lakh can easily be realised over the long term.
For example, if you deposit in PPF for 15 years, you will have a total of ₹18 lakh, and upon maturity, the fund will grow to approximately ₹32.54 lakh. This means you will also earn a total profit of ₹14.54 lakh.