Where Will Rs 5,000 Per Month Grow More in 25 Years? – Times Bull

By Samira Vishwas On Feb 14, 2026

PPF vs SIP: Many people want to invest their money in a place where they can save a small amount every month. There are many options for investing small amounts every month. Two of these options are the Public Provident Fund (PPF) and mutual fund SIPs. In both, you can invest a small amount every month and build a substantial corpus over the long term. But where can you invest the most? Let’s find out.

Public Provident Fund (PPF)

The Public Provident Fund (PPF) scheme is a government scheme where anyone can invest. Investors can start investing in this scheme with as little as Rs 500 annually. The maximum investment limit is Rs 1.50 lakh. The maturity period of PPF is 15 years, but you can extend it twice for 5-year periods, meaning you can invest for up to 25 years. The interest rate is 7.1 percent. Money in PPF is completely safe.

Mutual Fund SIP

Mutual fund SIPs are also a great investment option, where you can invest a small amount every month. Investing in SIPs over a long period of time provides you with the significant benefits of compounding. However, mutual fund returns are not fixed. These returns may fluctuate depending on the market, but over the long term, the average return is 12 percent, which is not fixed.

Investing in PPF Vs SIP

If you save Rs 5,000 every month, you’ll save Rs 60,000 annually. If you invest this Rs 60,000 in PPF every year for 25 years, you’ll invest a total of Rs 1.5 million. After 25 years, you’ll receive a total of Rs 41.23 lakh upon maturity. This means a profit of Rs 26.23 lakh.

Now, regarding SIPs, if you invest Rs 5,000 every month in SIPs for 25 years, you’ll invest a total of Rs 1.5 million. The return here is not fixed. Even if you earn a 12 percent return, you’ll receive a total of Rs 85.11 lakh, which includes Rs 70.11 lakh as your own return. This return may increase or decrease depending on market movements.

So, if you’re risk-averse and want safe returns with tax benefits, PPF is a better option. But if you can take a little risk and expect higher returns, SIP is great option. Which one to choose depends on your needs and risk appetite. PPF will yield you Rs 6.50 lakh after 15 years, while SIP can yield up to Rs 1,1898,285. Understand your financial situation and goals thoroughly before investing.