Long Term Investment: There are many investment options available in the market for Indian investors. Investors choose among these options according to their needs and preferences. Some people place their bets on safe investments, while others place their bets on investments based on market risks.
If you are also looking for a scheme that will give a good return in the long run, then you can think of investing in Public Provident Fund (PPF) and Mutual Funds SIP. Let us know where you can get more returns in these two options…
mutual fund sip
If an investor is planning to build a large corpus by investing small amounts for a long time, then mutual fund SIP can be a beneficial investment option for them. Investing under this gives the benefit of compounding.
Broadly speaking, if market conditions remain good, investors can get an average annual return of 12 percent. However, mutual fund SIPs are subject to market risks, so variations in returns are also possible.
Public Provident Fund
Like SIP, it is also liked by investors who want to invest for a long time. The maturity period of Public Provident Fund is 15 years. If we talk about interest rates, investors get 7.1 percent interest on their investments.
SIP Vs PPF
If a person does SIP of Rs 10 thousand every month for 15 years, then his total investment will be Rs 18 lakh. At an estimated return rate of 12 percent, this amount can increase to approximately Rs 47.59 lakh. That means, in the long run, you can get a potential profit of around Rs 29.59 lakh.
At the same time, if you deposit the same amount in PPF for 15 years, then the total investment will be Rs 18 lakh and on maturity this fund will be around Rs 32.54 lakh. That means you will get a total profit of Rs 14.54 lakh.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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