Govt’s guarantee on PPF or SIP’s higher returns:How much corpus will you accumulate with ₹10,000 monthly savings in these schemes?

If you want to save ₹10,000 every month and your goal is to build a substantial fund over the next 15 years, you have two of the most popular options before you: the government-backed PPF and market-linked SIPs. While PPF guarantees 100% tax-free returns with no risk, SIPs have the potential to build a large corpus over the long term through wealth compounding. Let’s understand which option offers greater benefits by looking at the real calculations for 15 years and the figures after tax deductions. Example: Suppose two friends, Rahul and Amit, plan to save ₹10,000 every month for 15 years. Over this entire period, a total of ₹18 lakh will be invested from their pockets. How much money will be in each person’s account after 15 years? PPF currently offers 7.1% annual compound interest Rahul, who chooses the PPF route, will receive ₹32.54 lakh in hand after 15 years. This investment is completely secure, so Rahul will know from the very first day how much he will receive at maturity. Equity SIP will incur 12.5% LTCG tax Returns in mutual funds are not fixed; instead, they depend on the performance of the stock market. Additionally, a 12.5% Long-Term Capital Gains (LTCG) tax is deducted when the money is withdrawn after more than one year. Let’s examine Amit’s investment at three different return levels: 1. If it earns an annual return of 8% 2. If the annual return was 10% 3. If the annual return was 12% Which is better for your profile?