Make 10 thousand rupees 2 crores! PPF or mutual fund, what do you invest in? Find out here

Last Updated on May 18, 2021 by Bansari

In general, no comparison can be made between mutual funds and public provident funds. Both are different investment options. In mutual funds, if the risk is high, the return is also high, while in PPF the security is high but the return is low. Both are two completely different instruments of investment.

Which is a better option in PPF, MF?

However, if you have to choose what is the best option to become a millionaire in the long run, then what will you do. However, it is not possible to give a direct answer, as both have advantages and disadvantages. Where you can invest and withdraw money in mutual funds at any time, except ELSS funds, with a lock-in period of 3 years. When in PPF your money is locked for 15 years.


Suppose you are 30 years old, till the age of 60, you invest Rs 10,000 per month in a mutual fund through SIP. That is, you invest Rs 1.2 lakh in a year. You invest the same amount in PPF every year. So how much money will you have on the day of retirement.

Investment in MF through SIP

Age 30 years
Duration of stay 30 years
Estimated return 10 percent
Monthly SIP 10,000
Total investment 36 lakhs
Total return 1.91 crore
Total value 2.28 crores

Invest in PPF

Age 30 years
The duration of the investment 30 years
Annual investment 1.2 lakh
Total investment 36 lakhs
Total return 87.6 lakh
Maturity 1.23 crore

As it turns out, if you invest Rs 10,000 in a monthly mutual fund for 30 years, you will get Rs 2.28 crore when you turn 60, when you can put the same amount in PPF and after 15 years, and after 15 years 5- Go ahead for 5 years and keep investing for 30 years, then you will get Rs 1.23 crore at retirement age. This means that you will get Rs 1 crore less than a mutual fund.


After 30 years in PPF, you get Rs. 1.23 crore, for which you have deposited Rs. 10,000 per month, you will have to deposit only Rs. 5400 per month instead of Rs. 10,000 to get the same amount from mutual funds. See

Age 30 years
The duration of the investment 30 years
Estimated return 10 percent
Monthly SIP 5400
Total investment 19.44 lakhs
Total return 1.03 crore
Total value 1.23 crore

Mutual funds always outperform PPF in terms of returns, but PPF is more secure in terms of risk, you get a fixed return which is guaranteed by the Government of India, but depending on the volatility of the mutual fund market, there is no guarantee. Although there are many mutual funds that are less risky, their returns are lower.

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