SIP vs PPF for Rs 85,000/year investment: Which can create higher corpus in 15 years?

March 22, 2025

5 minutes read

SIP vs PPF: Systematic Investment Plan (SIP) and Public Provident Fund (PPF) are two long-term investment options. Those who prefer risk-free schemes choose PPF while those who can take on risk opt for an SIP mutual fund. Both are different in nature such as return rate, maturity period, and investment limit. Let’s learn about them and compare their return for an investment of Rs 85,000 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 of Rs 1.5 lakh per year
Offers average long-term return of 12%	Offers an interest rate of 7.1%
Can invest invest monthly, quarterly, or yearly	Maturity and lock-in period is 15 years
High Risk	Low risk
No lock-in period, investor gets to choose	Maturity and lock-in period is 15 years

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

Suppose you are investing Rs Rs 85,000 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 95,000 Annual Investment?

If you invest Rs 85,000 yearly in SIP (Rs 7,083 per month), your total investment will amount to Rs 12,74,940 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 35,73,912, including Rs 22,98,972 as capital gains.

SIP Returns (with 12% annual interest rate):

Monthly investment: Rs 7,083
Total investment (15 years): Rs 12,74,940
Estimated returns: Rs 22,98,972
Total value: Rs 35,73,912

PPF Investment Calculation: How Much Will Your Corpus Grow in 15 Years with Rs 95,000 Annual Investment?

If you invest Rs 85,000 per year in a PPF, your total investment over 15 years will also amount to Rs 12,75,000. However, with an annualised return of 7.1 per cent, the interest earned would be Rs 10,30,319. With this, the final corpus would be around Rs 23,05,319 (principal + interest).

PPF Returns (with 7.1% annual interest rate):

Annual Investment: Rs 85,000
Total Investment (15 years): Rs 12,75,000
Estimated Returns: Rs 10,30,319
Total Corpus: Rs 23,05,319

SIP Investment Summary –

Year	SIP Amt / Month	Total Invested Amt	Interest Amt / Year	Maturity Value
Year1	7,083	84,996	5,732	90,728
Year2	7,083	1,69,992	22,972	1,92,964
Year3	7,083	2,54,988	53,177	3,08,165
Year4	7,083	3,39,984	97,992	4,37,976
Year5	7,083	4,24,980	1,59,271	5,84,251
Year6	7,083	5,09,976	2,39,101	7,49,077
Year7	7,083	5,94,972	3,39,835	9,34,807
Year8	7,083	6,79,968	4,64,125	11,44,093
Year9	7,083	7,64,964	6,14,957	13,79,921
Year10	7,083	8,49,960	7,95,698	16,45,658
Year11	7,083	9,34,956	10,10,141	19,45,097
Year12	7,083	10,19,952	12,62,560	22,82,512
Year13	7,083	11,04,948	15,57,772	26,62,720
Year14	7,083	11,89,944	19,01,204	30,91,148
Year15	7,083	12,74,940	22,98,972	35,73,912

PPF Investment Summary –

Year of deposit	Amount deposited	Interest earned	Year end Balance
1 year	Rs 85,000	Rs 6,035	Rs 91,035
2 years	Rs 1,70,000	Rs 18,534	Rs 1,88,534
3 years	Rs 2,55,000	Rs 37,955	Rs 2,92,955
4 years	Rs 3,40,000	Rs 64,790	Rs 4,04,790
5 years	Rs 4,25,000	Rs 99,565	Rs 5,24,565
6 years	Rs 5,10,000	Rs 1,42,844	Rs 6,52,844
7 years	Rs 5,95,000	Rs 1,95,231	Rs 7,90,231
8 years	Rs 6,80,000	Rs 2,57,372	Rs 9,37,372
9 years	Rs 7,65,000	Rs 3,29,960	Rs 10,94,960
10 years	Rs 8,50,000	Rs 4,13,737	Rs 12,63,737
11 years	Rs 9,35,000	Rs 5,09,498	Rs 14,44,498
12 years	Rs 10,20,000	Rs 6,18,092	Rs 16,38,092
13 years	Rs 11,05,000	Rs 7,40,432	Rs 18,45,432
14 years	Rs 11,90,000	Rs 8,77,492	Rs 20,67,492
15 years	Rs 12,75,000	Rs 10,30,319	Rs 23,05,319