rewrite this title and make it good for SEOSIP vs PPF for Rs 99,999/year investment: Which can create higher corpus in 15 years?

SIP vs PPF: Public Provident Fund (PPF) and Systematic Investment Plan (SIP) are two investment options that help generate a substantial corpus in the long term. However, both differ in nature, as one is a risk-free government scheme while the other is market-linked and carries risk. Let’s learn more about them and compare their return for an investment of Rs 99,999 per year over 15 years.

SIP
PPF

Market-linked investment option
Government-backed savings scheme 

Can invest money based on financial capacity
Can invest maximum Rs 1.5 lakh per year

Offers average long-term return of 12 per cent
Offers an interest rate of 7.1 per cent

People can invest monthly, quarterly, or yearly
Maturity period is 15 years

High Risk
Low risk

No lock-in period, investor gets to choose
Lock-in period is 15 years

SIP vs PPF: How Much Corpus Can You Generate in 15 Years?

Suppose you are investing Rs 99,999 annually in both SIP and PPF. Now, can you guess how much corpus you can generate in 15 years? Let’s calculate.

SIP Investment Calculation: How Much Corpus Will You Generate in 15 Years with Rs 99,999 Annual Investment?

If you invest Rs 99,999 yearly in SIP (Rs 8,333 per month), your total investment will amount to Rs 14,99,940 in 15 years. Assuming an average annual return of 12 per cent, the total corpus generated at the end of 15 years would be approximately Rs 42,04,632, including Rs 27,04,692 as capital gains.

SIP Returns (with 12% annual interest rate):

Monthly investment: Rs 8,333
Total investment (15 years): Rs 14,99,940
Estimated returns: Rs 27,04,692
Total value: Rs 42,04,632

PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 99,999 Annual Investment?

If you invest Rs 99,999 per year in a PPF, your total investment over 15 years will also amount to Rs 14,99,985. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 12,12,127. With this, the final corpus would be around Rs 27,12,112 (principal + interest).

PPF Returns (with 7.1% annual interest rate):

Annual Investment: Rs 99,999
Total Investment (15 years): Rs 14,99,985
Estimated Returns: Rs 12,12,127
Total Corpus: Rs 27,12,112

SIP Investment Summary –

Year
SIP Amt /Month
Total InvestedAmt
Interest Amt /Year
MaturityValue

Year1
8,333
99,996
6,744
1,06,740

Year2
8,333
1,99,992
27,026
2,27,018

Year3
8,333
2,99,988
62,561
3,62,549

Year4
8,333
3,99,984
1,15,286
5,15,270

Year5
8,333
4,99,980
1,87,379
6,87,359

Year6
8,333
5,99,976
2,81,297
8,81,273

Year7
8,333
6,99,972
3,99,809
10,99,781

Year8
8,333
7,99,968
5,46,033
13,46,001

Year9
8,333
8,99,964
7,23,484
16,23,448

Year10
8,333
9,99,960
9,36,122
19,36,082

Year11
8,333
10,99,956
11,88,409
22,88,365

Year12
8,333
11,99,952
14,85,375
26,85,327

Year13
8,333
12,99,948
18,32,686
31,32,634

Year14
8,333
13,99,944
22,36,727
36,36,671

Year15
8,333
14,99,940
27,04,692
42,04,632

PPF Investment Summary –

Year of deposit
Amount deposited
Interest earned
Year end Balance

1years
Rs 99,999
Rs 7,100
Rs 1,07,099

2years
Rs 1,99,998
Rs 21,804
Rs 2,21,802

3years
Rs 2,99,997
Rs 44,652
Rs 3,44,649

4years
Rs 3,99,996
Rs 76,222
Rs 4,76,218

5years
Rs 4,99,995
Rs 1,17,134
Rs 6,17,129

6years
Rs 5,99,994
Rs 1,68,050
Rs 7,68,044

7years
Rs 6,99,993
Rs 2,29,681
Rs 9,29,674

8years
Rs 7,99,992
Rs 3,02,787
Rs 11,02,779

9years
Rs 8,99,991
Rs 3,88,185
Rs 12,88,176

10years
Rs 9,99,990
Rs 4,86,745
Rs 14,86,735

11years
Rs 10,99,989
Rs 5,99,403
Rs 16,99,392

12years
Rs 11,99,988
Rs 7,27,160
Rs 19,27,148

13years
Rs 12,99,987
Rs 8,71,087
Rs 21,71,074

14years
Rs 13,99,986
Rs 10,32,333
Rs 24,32,319

15years
Rs 14,99,985
Rs 12,12,128
Rs 27,12,113

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning.)