SIP vs PPF: Invest just Rs.100 and get triple the profit..!?

SIP vs PPF: In this post, you will find a good plan to help you fulfill your dreams financially. In a few days, we will step into the new year. Generally, it is a habit of many people to set new goals every year and start planning ways to achieve them from the beginning of the new year. However, sometimes goals are not achievable. If something like that happened to you in 2023, don't worry. Start planning for next year instead. In this post, you will find a good plan to help you fulfill your dreams especially financially. Investing money has many benefits. This will help you build an emergency fund with financial stability. Nowadays people are showing more interest in investing in SIP and PPF. If you think that this requires a huge amount of investment, know that it is not. Start investing by saving Rs.100 daily.

SIP vs PPF:
If an investor invests in SIP or PPF for the long term, he will get better returns. This can be understood by this simple calculation.
How to get double income from PPF?
By saving Rs 100 every day, you can invest Rs 3,000 every month and Rs 36,000 in a year. If you invest Rs 36 thousand in PPF in one year, your investment amount in 15 years will be Rs 5 lakh 40 thousand. Currently, the PPF account is paying 7.1% interest. At an interest rate of 7.1% over 15 years, your income will be Rs.4 lakh 36 thousand 370. At maturity, the investment amount plus the interest amount will total Rs.9,76,370.
What will SIP income look like?

On the other hand, if you save Rs 100 daily and invest monthly in SIP, you will invest a total of Rs 5,40,000 in 15 years. Generally, SIP gives a 12% return. So as per this calculation, you will get Rs.9,73,728 in interest only. At the same time, you will get a total of Rs.15,13,728 at maturity. This is almost three times the investment amount. That is, one can contribute Rs. 5,40,000 invested, after 15 years i.e. in 2039, Rs. 9,76,370 will get the maturity amount. Whereas, if he invests in SIP, he will get Rs. 15,13,728 can be earned. However, before investing in SIP, definitely consult a financial advisor.

Small savings schemes:

Small savings schemes are investment schemes regulated by the Department of Economic Affairs (DEA) in the Ministry of Finance. The central government has recently introduced new regulations aimed at amending the existing rules with an aim to encourage more people to take an interest in these schemes. This change enables them to open accounts at their convenience. It aims to provide senior citizens with a more attractive and flexible investment choice.
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SIP vs PPF

Sowmiya Sriram

23/12/2023 07:58 PM