PPF vs SIP: Do you want to become a millionaire?However, do not understand what to invest in both the Central Government Guaranteed Public Provident Fund and Mutual Funds Systematic Investment Fund Schemes? But, let’s find out with calculations how you can become a millionaire quickly by investing in it.
PPF vs SIP: Many People Want To Become Millionaires.
Expect to earn more in less time. Only a few will step forward accordingly. If you want to earn more in a short period of time, you have to choose and invest in schemes that provide adequate returns. Only then can they reach their desired goal. It is better to choose the best scheme in the market and invest. It has been proven in many cases that investing in the long term can yield good returns. There are risk-free investment avenues as well as some risky ones. But both of these have their own returns depending on which direction they go. It is best to invest in PPF or SIP if smart investment strategies are followed. Let’s try to find out which of these two schemes can make you a millionaire quickly if you deposit Rs.200 per day.
Daily in Public Provident Fund (PPF)
Rs. 200 per month means Rs. 6,000 per investment will turn into a huge corpus over a period of time. Rs.72,000 will be deposited per year in this calculation. Generally people can say that Public Provident Fund Scheme under Central Government is safe. It provides guaranteed returns. Also gives tax exemption up to Rs.1,50,000. If you invest regularly, you will get a total of Rs. 19 lakh 52 thousand 740 returns in a period of 15 years. The minimum maturity period of PPF is 15 years. After that there is a possibility of extension for 5 years. If you deposit in PPF for another 5 years i.e. 20 years, the amount will be Rs.31 lakhs 95 thousand 978 lakhs. If extended for another 5 years, it will be Rs.49 lakhs 47 thousand 847. The center reviews the PPF interest rate every 3 months. Currently the interest rate on PPF is 7.1 percent. Accordingly, even if you invest continuously for 25 years, you will not earn crores of rupees. It will have to continue investing in it for a longer period of time.
In Mutual Fund SIP (SIP) If
you invest Rs.6000 per month in Mutual Funds Systematic Investment Plan (SIP) and continue for 25 years, if you get 10 percent return, at the time of maturity Rs. 80 lakhs 27 thousand will be 342. Now if this investment is extended for 30 years, Rs. 1 crore 36 lakh 75 thousand 952 will come. Currently, most schemes in mutual funds are offering returns between 12 to 15 percent. According to this you will get Rs. 2 crore funds can be deposited.
