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SIP vs PPF — equity risk vs a guaranteed, tax-free return

PPF is government-backed, tax-free, and fully guaranteed — but locked in for 15 years and capped at a modest annual contribution. A SIP has no lock-in or cap, but its return isn't guaranteed. See the actual projected gap over your own contribution amount and horizon.

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SIP Calculator vs PPF Calculator15-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

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How each one actually works
SIP (Systematic Investment Plan)

A fixed amount invested into equity mutual funds every month, automatically, regardless of whether the market is up or down.

PROS
No guessing when to invest — you buy at every price point over time
Highly liquid — redeem within a few business days
No cap on how much you can invest
CONS
No guaranteed return — depends entirely on market performance
Requires discipline to continue through downturns
Short-term gains (under 1 year) are taxed at a higher rate

Best for: Long-term goals (7+ years) where you can tolerate volatility for higher growth potential.

PPF (Public Provident Fund)

A government-backed, long-term savings scheme with a 15-year lock-in, a capped annual contribution, and fully tax-free interest and maturity.

PROS
Fully tax-free — contribution, interest, and maturity (EEE status)
Government-guaranteed, effectively zero credit risk
Rate is typically higher than most bank FDs
CONS
15-year lock-in with only limited partial withdrawal after year 7
Annual contribution capped (currently ₹1.5 lakh)
Rate is revised quarterly by the government and can fall

Best for: The guaranteed, tax-free core of a long-term goal like retirement, where you can commit to the lock-in.

Questions
Can I do both SIP and PPF?

Yes — most people use PPF for the guaranteed, tax-free core of a long-term goal and a SIP for the growth-seeking portion. They serve different jobs in a plan rather than competing for the same money.

Is PPF only available in India?

Yes, PPF is an Indian government scheme — this comparison is most relevant if you're investing in Indian Rupees.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.