Systematic investment plan and public provident fund are very beneficial for those who seek options to invest for a long time. The specialty of both is different, but you can invest a lot of money by investing in it for a long time. But which options are right for your financial goals? Let us tell you as an example, if you invest an annual investment of Rs 1,35,000, then how much return you will get.
SIP is an investment option in mutual funds which is connected to the stock market. In this, any person can invest less than 500 rupees. You can get up to 12 percent returns in SIP. You can invest in it according to your ability and monthly earnings.
PPF or Public Provident Fund This is a government scheme that provides tax benefits to you. In this, you can invest up to 1.5 lakh rupees in a year. The interest rate given by PPF is 7.1 percent. The maturity period in this is 15 years.
If you are investing Rs 1,35,000 annually in both SIP and PPF for 15 years, can you guess how much you can raise money? Let us tell you about it.
If you invest Rs 11,250 per month in SIP annually Rs 1,35,000 per month, then your total investment will be Rs 20,25,000 in 15 years. It gets an average annual return of 12 percent, while at the end of 15 years, the total deposit amount will be around 56,76,480 rupees, which includes Rs 36,51,480 as your capital profit.
If you invest Rs 11,250 every month, then the total investment will be Rs 20,25,000 in 15 years. In which you will get an estimated return of Rs 36,51,480. Due to which the entire price will be Rs 56,76,480.
If you invest Rs 1,35,000 every year in PPF, then your total investment in 15 years will also be Rs 20,25,000. However, with an annual return of 7.1 percent, the interest will be Rs 20,25,000. Along with this, the last fund in it will be around Rs 36,61,388.
