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PPF is a safe scheme. If you want to invest in a safe scheme for the long term, PPF is the best option. However, you can also choose a mutual fund SIP for long-term investment.

Today, we will explore which will yield higher returns over a 15-year investment: SIP or PPF. And where will you benefit?

Calculation
PPF: How much return will you receive after 15 years?

Investment amount: ₹60,000 per annum
Return: 7.1%
If a person invests ₹60,000 per year in PPF for 15 years, then at a 7.1% return, they will receive ₹16,27,284 at maturity. The principal amount will grow to ₹9 lakh over these 15 years. Furthermore, the interest alone will yield ₹7,27,284 over 15 years. However, this return is completely safe.

SIP: How much return will you receive after 15 years?

If a person invests ₹5,000 every month in a mutual fund SIP for 15 years, they will earn ₹25,23,000 at a 12% return. The principal amount will grow to ₹9 lakh over these 15 years. However, the return on mutual funds will depend on market fluctuations.

Which is better for you?
If you are willing to take some risk, a mutual fund SIP would be a better option. However, if you are risk-averse, PPF is the best option. Your money remains safe in PPF.

If you prefer, you can invest some of the money in mutual funds and the remaining in PPF. If you invest in both PPF (₹30,000 per year) and SIP (₹2,500 per month) for 15 years, you will receive a return of ₹20,74,642 at maturity. This way, your portfolio balances out.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.