Everyone who invests money wants to become a millionaire quickly. But many people do not have proper knowledge about investment and may lose money. In some schemes, money grows very slowly, so returns are low. SIP, PPF, and gold are considered good investment options. But money does not grow at the same speed in all three.
If someone invests ₹10,000 every month in these three, let’s find out which scheme can make a person a millionaire first.
How Long Will It Take with SIP and PPF?
A Systematic Investment Plan (SIP) is a way to invest in mutual funds. It is good for long-term investing. SIP helps to benefit from market changes, but it has some risk. SIP in the stock market usually gives 12% to 14% returns. If someone gets 12% every year, it will take a little over 20 years to make ₹1 crore by investing ₹10,000 per month.
PPF or Public Provident Fund is a government scheme that gives safe returns. The current interest rate is 7.1% per year. If someone invests ₹10,000 every month at this rate, it will take about 28 years to make ₹1 crore. PPF has a minimum term of 15 years, and it can be extended every year after that.
Gold Investment Returns
Gold has given very good returns this year, more than 40%. Gold ETFs are another way to invest in gold, and they are almost pure gold (99.5%).
According to Value Research, the best gold ETFs over 10 years have given about 13.46% returns. If someone invests ₹10,000 every month in gold at this rate, they can make ₹1 crore in about 14 years.