Mutual Funds Vs PPF: There is no comparison between Mutual Funds and Public Provident Fund. Both are different investment options. In mutual funds, if the risk is high, the returns are also high, while in PPF, the safety is high but the returns are low.
New Delhi: Mutual Funds Vs PPF: There is no comparison between Mutual Funds and Public Provident Fund. Both are different investment options. In mutual funds, if the risk is high, the returns are also high, while in PPF, the safety is high but the returns are low. Both are two completely different instruments of investment.
Who is better in PPF, MF?
However, if you have to choose who is the best to become a millionaire in the long term, then what will you do. However, it is not possible to give a straightforward answer, because both have their advantages and disadvantages. Where you can invest and withdraw money in mutual funds at any time, except for ELSS funds, in which the lock-in period is 3 years. Whereas in PPF your money gets locked for 15 years.
Suppose you are 30 years old, till the age of 60 years, you invest 10,000 rupees every month in mutual funds through SIP. That is, you invest 1.2 lakh rupees a year. You invest the same amount in PPF every year. So what amount will you have on the day of retirement.
(A) Investment in MF through SIP
Age 30 years
Investment Period 30 years
Estimated Return 10%
Monthly SIP 10,000
Total Investment 36 lakh
Total Return 1.91 Crore
Total Value 2.28 Crore
(B) Investment in PPF
Age 30 years
Investment Period 30 years
Annual Investment 1.2 Lakh
Total Investment 36 Lakh
Total Return 87.6 Lakh
Maturity 1.23 Crore
So as it appears, if you invest 10000 rupees in a monthly mutual fund for 30 years, then you will get 2.28 crore rupees when you are 60 years old, whereas if you put the same amount in PPF and 5 after 15 years. If you continue for 5 years and continue investing for 30 years, then you will get Rs 1.23 crore at the age of retirement. Meaning you will get Rs 1 crore less than mutual funds.
In PPF, after 30 years, you have received Rs 1.23 crore, for that you have deposited Rs 10,000 every month, you will have to deposit only Rs 5400 every month instead of Rs 10,000 to get the same amount from mutual funds. , See
(C) Investment through SIP
Age 30 years
Investment Period 30 years
Estimated Return 10%
Monthly SIP 5400
Total Investment 19.44 Lakh
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 that is guaranteed by the Indian government, but depends on the fluctuations of the mutual fund market, its There is no guarantee of return. Although many funds in mutual funds are such that they are also less risky, but their returns are less.
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