Are you considering investing ₹10,000 per month for 15 years but unsure whether a Public Provident Fund (PPF) or a Systematic Investment Plan (SIP) will give you better returns? Let's break down the numbers and explore which investment can generate higher profits over time.

Different investors have different risk appetites. Some prefer safe investments with guaranteed returns, while others are willing to take market risks for higher potential gains. If you're torn between PPF and SIP, here’s how they compare:

✅ Guaranteed Returns: The PPF interest rate is currently 7.1% per annum (compounded annually).
✅ Tax-Free Earnings: PPF investments offer tax benefits under Section 80C, and the maturity amount is tax-free.

🔹 Investment Over 15 Years: ₹10,000 per month = ₹1,20,000 per year → ₹18,00,000 total investment
🔹 Interest Earned at 7.1%: ₹14,54,567
🔹 Total Maturity Amount: ₹32,54,567

✅ Higher Return Potential: Historically, mutual fund SIPs average around 12% annual returns (some funds may even exceed this).
✅ Market-Linked Growth: Unlike PPF, SIP returns are not fixed—they depend on stock market performance.

🔹 Investment Over 15 Years: ₹10,000 per month = ₹1,20,000 per year → ₹18,00,000 total investment
🔹 Interest Earned at 12% (Compounded Monthly): ₹32,45,760
🔹 Total Maturity Amount: ₹50,45,760

📈 PPF Maturity Value = ₹32.54 lakh
📈 SIP Maturity Value (12% average return) = ₹50.45 lakh

👉 SIP outperforms PPF by nearly ₹18 lakh in 15 years!

💰 PPF = Safe & Stable, but lower returns
📊 SIP = Higher returns, but market risks involved

• If you want security and tax-free guaranteed returns, PPF is the better option.
• If you can tolerate short-term market fluctuations for higher long-term wealth, SIP is more profitable.

🚀 If you’re comfortable with market risks, investing in SIPs can significantly outperform PPF over 15 years. However, if you want guaranteed returns and tax benefits, PPF remains a strong option.

💡 A smart approach? Invest in both! Use PPF for security and SIP for wealth creation.