Monday, June 25, 2018

public provident fund (ppf) vs mutual funds (mf) ppf vs mf 2018

I am showing you 12 years worth of analysis between PPF and Mutual Funds. 

If you invest 1,50,000 INR today then as per current interest rates and descreasing trend observed in PPF interest rates over the past few years due to inflation you might end up with approximately 3.1 lacs after 12 years. 

On the other hand if you invest same amount in Mutual Funds and assumed return in 3 years (ELSS scheme) is 15% plus or minus 5% then over the period of 12 years you will have approximately 2.6 lacs in hand. 

This analysis is as per current market treand and It does not claim any guarantee in genuinity of these numbers. 

Year PPF
Mutual Funds

investment % rate of interest amount
investment % return amount
1 150000.0 7.6 161400.0
150000 15 172500
2 161400.0 7.4 173343.6

0 172500
3 173343.6 7.2 185824.3

0 172500
4 185824.3 7 198832.0
172500 13 194925
5 198832.0 6.8 212352.6

0 194925
6 212352.6 6.6 226367.9

0 194925
7 226367.9 6.4 240855.4
194925 14 222214.5
8 240855.4 6.2 255788.5

0 222214.5
9 255788.5 6 271135.8

0 222214.5
10 271135.8 5.8 286861.7
222214.5 20 266657.4
11 286861.7 5.6 302925.9

0 266657.4
12 302925.9 5.4 319283.9

0 266657.4

As per my personal opinion and experience in long run I see better returns on investment in PPF over Mutual Funds.

Leave your comments for discussion.