PPF or SIP? Which of the two can you invest in to quickly become the owner of up to Rs 2 crore? Let’s understand the complete calculation…
PPF vs SIP: To keep our future financially strong, we all like to invest somewhere. Whether this investment is being made for a long time or with the desire to get more returns in a short time, the investor decides his plan and adopts it.
However, a smart move is to invest in a place from where you can get strong returns in a short time. If you adopt a smart investment plan, then along with knowing the difference between PPF and SIP, you can also know where investing in both of them can be a profitable deal for you.
Do you want to accumulate property worth Rs 2 crore in a short time?
PPF or SIP? By investing in which of the two, you can quickly become the owner of up to Rs 2 crore? To know this, you will have to do smart planning. According to some experts, by saving Rs 200 daily i.e. by depositing Rs 6 thousand per month, you can accumulate up to Rs 72 thousand in a year. After this, you can plan to invest this 72 thousand rupees somewhere. However, let us know the complete calculation of where it will be beneficial to invest in PPF or SIP.
Is it right to invest in PPF?
Public Provident Fund (PPF) is considered safe in terms of guaranteed returns. By investing in it, the investor also gets a discount of up to Rs 150,000. You can choose PPF for good returns and safe investment. However, SIP may be better than PPF to deposit Rs 2 crore, but it can be risky.
If you invest 6 thousand rupees every month for 15 years in PPF, then you can deposit 19 lakh 52 thousand 740 rupees. The minimum maturity period of PPF is 15 years. Whereas, if you deposit 6 thousand rupees every month for a period of 20 years, then the amount will be 31 lakh 95 thousand 978 rupees.
If you invest 6 thousand rupees per month in SIP?
If you invest 6 thousand rupees every month for 25 years, then you will get 10 percent return. 80 lakh 27 thousand 342 rupees can be deposited till maturity. If you deposit 6 thousand rupees every month for 30 years, then 1 crore 36 lakh 75 thousand 952 rupees can be deposited.
Now understand the calculation of 2 crore rupees
According to experts, 10% return is very normal. Whereas, getting 12% return in diversified funds is also a normal thing. With such interest rate, the amount will be Rs 1 crore 13 lakh 85 thousand 811 in a period of 25 years. Whereas, in 30 years, the amount will be up to Rs 2 crore 11 lakh 79 thousand 483. Know about Best Small Cap Funds 2024 through video.
For your information, let us tell you that PPF is called a safe investment. Whereas, there is risk in SIP. In this, a fixed interest rate is received every three months, which is usually 7.1%. Whereas, in SIP, a return of 10 or 12 percent is received.
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