In today’s era, every person tries to save his income. Even if he fails in his attempt. What is your savings is more important than how much salary you get at the end of the month. How much fund do you have in case of emergency? Although there are many options for investment in the market. Today we are going to tell you about one of the two safest options, SIP and PPF. Through data, you will understand that if you deposit Rs 90 thousand annually, which scheme will benefit you more in 15 years?
Saving a big fund for the future does not always require a high salary or a huge amount. If you keep investing small amounts regularly, you can generate a good amount of money in the long run. Both are regular investment methods, but their risks, returns and flexibility are different. We have considered the return of SIP as 12% per annum. In this, an investment of ₹ 7,500 is considered every month. Because the total investment is Rs 90 thousand annually.
How much fund will be available in SIP
By investing Rs 7,500 every month in SIP for 15 years, if you get an average annual return of 12%, then your total fund can reach around Rs 37.8 lakh. During this period you invest only Rs 13.5 lakh, but due to compounding your money increases almost three times.
funds in ppf
On the other hand, if you invest the same Rs 90,000 annually in PPF, then after 15 years at 7.1% interest rate, your fund will become around Rs 24.4 lakh. In this also your total investment amount is only Rs 13.5 lakh, but due to fixed interest, the profit in it remains limited. That is, after making the same investment in both, the returns of SIP prove to be much higher than PPF.