PPF vs SIP: If you want to invest for the long term, then PPF and SIP can be two great options. But the question is, which one will give you more returns in 5, 10, or 15 years? So let us tell you that PPF is a safe government scheme, in which you get a fixed interest of 7.1%. Whereas, SIP is market-based and you can get a return of 12% or more. So in the calculation, we will understand where you can get more returns.

PPF vs SIP, which is the best?

SIP and PPF, both are famous investment options. But the question is, which one can give more returns in 15 years? SIP is a market-based investment, which depends on the fluctuations of the stock market, whereas PPF is a government-guaranteed scheme, which gives safe returns. So we will know which option between SIP and PPF will be right according to your needs.

Which will be the best investment option?
PPF and SIP, both are great options for long-term investment, but there is a big difference between them. PPF is a government-guaranteed scheme, in which fixed interest is available and it is completely safe. On the other hand, SIP is a method of investing in mutual funds, where the return depends on the market conditions. If you want to save without risk, then PPF is better, but SIP can give higher returns in the long run.

How much interest rate benefit will you get?
The question that comes to mind is that if you invest ₹1,00,000 (₹8,333 per month) every year, then what will be your return after 15 years? So let us tell you that with an interest rate of 7.1% in PPF and an estimated return of 12% in SIP, it is important to evaluate both options.

Understand the profit in the calculation.
Investing ₹5,00,000 for 5 years in PPF at 7.1% interest will give a fund of ₹6,63,000, while in SIP at 12% interest, you will get a fund of ₹7,65000. On the other hand, investing ₹10,00,000 in PPF at 7.1% in 10 years will give ₹15,00,000, while in SIP at 12% you will get a fund of ₹22,16,000. If you invest ₹1,00,000 every year for 15 years, then how much return will you get in PPF and SIP? At 7.1% interest rate in PPF, you will get ₹28.87 lakh after 15 years, while with a 12% estimated return in SIP, this amount can reach ₹43.69 lakh. SIP's benefits are more visible even on 5 and 10-year investments.

SIP vs PPF which is a better investment option?*
PPF is a safe government scheme, while SIP is linked to market risk. PPF has a lock-in period of 15 years, while in SIP you can withdraw money anytime. Let us tell you that SIP has a potential return of up to 12%, while PPF has a fixed interest rate of 7.1%. That is, if you want a safe investment, then choose PPF and if you want higher returns and growth in the long term, then SIP is a better option.

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