SIP vs PPF: Which is Best Investment Option for ₹1 Lakh Annual Saving?
Written By: Mobin
SIP is a market-linked investment, which gives an average return of 12%. A corpus of about 39.65 lakh can be created on an annual investment of 1 lakh in 15 years.
SIP
PPF is a government savings scheme, which gives a return of 7.1%. A corpus of about 27.12 lakh is created on an annual investment of 1 lakh in 15 years.
PPF
SIP gives a profit of 24.65 lakhs in 15 years, while PPF gives a profit of 12.12 lakhs.
Comparison
PPF has a lock-in period of 15 years, while in SIP you can stop or withdraw the investment anytime.
Liquidity
Investment, interest and maturity in PPF are tax exempt. In SIP, only ELSS funds are tax exempt.
Tax
SIP has the facility of monthly investment, while the annual investment limit in PPF is Rs 1.5 lakh.
Investment
The return in SIP depends on the market, while the return in PPF is decided by the government.
Returns
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