SIP vs PPF Calculator — Which Builds More Wealth?
Compare SIP and PPF returns over 15 20 and 30 years. Both qualify for 80C — see which gives better post-tax returns.
SIP in ELSS and PPF both qualify for Section 80C deduction but deliver very different results. Rs 1.5L/year for 15 years: SIP at 12% = Rs 59.31 lakh (taxable LTCG). PPF at 7.1% = Rs 40.68 lakh (completely tax-free). SIP gives 46% more but with market risk and some tax on gains. PPF gives guaranteed tax-free returns with zero risk.
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SIP Calculator
Key Information
| Parameter | Details |
|---|---|
| SIP Returns (ELSS at 12%) | 12% - 15% CAGR (historical) |
| PPF Returns | 7.1% (guaranteed tax-free) |
| SIP Lock-In (ELSS) | 3 years |
| PPF Lock-In | 15 years |
Frequently Asked Questions
SIP vs PPF which gives more in 20 years?
Rs 1.5L/year for 20 years: SIP at 12% = Rs 1.21 crore. PPF at 7.1% = Rs 66.28 lakh. SIP gives Rs 54.72 lakh MORE. After LTCG tax on SIP gains SIP still delivers approximately Rs 1.12 crore — significantly more than PPF. However PPF guarantees your Rs 66L while SIP value fluctuates.
Should I invest in both SIP and PPF?
Yes the ideal strategy: invest Rs 1.5L in ELSS SIP for 80C (get market returns with shortest 3-year lock-in) and separately invest in PPF for guaranteed tax-free returns. PPF does not count against your SIP allocation. Use PPF as the stable foundation and SIP as the growth engine of your portfolio.
Is PPF safer than SIP?
PPF is backed by the Government of India with guaranteed returns — zero risk of loss. SIP in equity mutual funds can lose 20-40% in a bad year. However over 10+ year periods SIP in diversified equity funds has never delivered negative returns historically. The risk of SIP decreases with time while returns increase.
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Last updated: March 2026