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SIP vs PPF: Invest 10K Monthly, Get 18 Lakhs More with SIP! Which is Better?
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News18•24-09-2026, 10:01
SIP vs PPF: Invest 10K Monthly, Get 18 Lakhs More with SIP! Which is Better?
- •Investing Rs 10,000 monthly in PPF yields Rs 32.54 lakhs in 15 years at 7.1% interest.
- •The same amount in SIP could generate Rs 50.45 lakhs in 15 years with an estimated 12% return.
- •SIP offers the potential for approximately Rs 18 lakhs more than PPF, but it is market-linked.
- •PPF is risk-free and tax-exempt (EEE category), while SIP involves market risks.
- •SIP is more profitable for those willing to take risks; otherwise, PPF is a safer option.
Key Questions Answered
PPF currently provides a guaranteed annual interest rate of 7.1 percent. It falls under the EEE category, meaning the invested amount, earned interest, and maturity returns are completely 100 percent tax-free.
According to market experts, equity mutual funds through SIPs have the potential to deliver estimated annual returns of up to 12 percent over a long-term horizon of 15 years, though they involve market risks.
Investing Rs 10,000 monthly for 15 years results in a total maturity value of Rs 32,54,567 under PPF at a 7.1 percent interest rate, whereas an SIP assuming a 12 percent return yields a total of Rs 50,45,760, offering roughly Rs 18 lakh more despite market risks.
