When it comes to investing, a common question people ask is: Should I invest in SIP or PPF? Both options are trusted and popular among Indian investors.
But if you invest ₹1,000 every month for 10 years, which one will give you more returns? Let’s break it down with easy calculations.
SIP Returns: How Long to Become a Millionaire?
Let’s first understand what SIP (Systematic Investment Plan) offers.
In a SIP, you invest a fixed amount (like ₹1,000) every month in a mutual fund.
The return depends on how the market performs.
Over the long term, equity mutual funds generally give an average return of around 12% per year.
So, if you invest ₹1,000 per month for 10 years at 12% annual return, your investment could grow significantly.
In fact, this kind of return helps you reach your financial goals faster, possibly turning you into a millionaire sooner than other traditional options like PPF.
