Most people dream of becoming financially free or reaching the ₹1 crore or even ₹2 crore mark in their lifetime. But while saving money is important, where you invest that money makes all the difference. In India, many people choose the Public Provident Fund (PPF) because it is safe and offers tax benefits. But is it powerful enough to help you create real wealth?
A new trend shows that Systematic Investment Plans (SIPs) in mutual funds are helping investors grow faster. Let us explain this with an easy-to-understand example, using just ₹200 per day — the price of a snack or a cup of tea. You will be surprised to see how this small daily habit can turn into a massive ₹2 crore.
What Will You Get with ₹200 Daily in PPF?
PPF is known for safety. It is backed by the Government of India and offers tax-free interest. Many risk-averse investors prefer it for long-term savings. Let’s say you invest ₹6,000 per month (₹200/day).
Assuming the current 7.1% annual interest rate, here’s what your money grows into:
- 15 Years: You invest ₹10.8 lakh and get around ₹19.5 lakh
- 20 Years: You invest ₹14.4 lakh and receive nearly ₹32 lakh
- 25 Years: With ₹18 lakh invested, you get around ₹49.5 lakh
- 30 Years: ₹21.6 lakh investment gives you about ₹73 lakh
Even after 30 years, PPF doesn’t cross the ₹1 crore mark.
What Happens with ₹200 Daily SIP in Mutual Funds?
Now let’s take the same ₹6,000 per month and invest it in a SIP linked to equity mutual funds. Unlike PPF, SIPs are market-based and may offer better returns if held long-term.
Case 1: 10% Annual Return (Moderate Expectation)
- 25 Years: You invest ₹18 lakh and get nearly ₹74.6 lakh
- 30 Years: You invest ₹21.6 lakh and end up with around ₹1.36 crore
Even with moderate returns, SIPs beat PPF by a huge margin.
Use This Proven SIP Formula to Reach ₹2 Crore
Now let’s raise the bar slightly. Many good mutual funds deliver an average 12% return over the long term (20-30 years). Based on this, here’s how your SIP performs:
- ₹6,000/month = ₹200/day
- Investment Period: 30 years
- Total Invested: ₹21.6 lakh
- Expected Wealth: ₹2.11 crore
Yes, this is how regular savings and the power of compound interest create massive wealth. You don’t need to be rich to become a Crorepati; you need discipline and time.
SIP vs PPF Comparison (For 30 Years)
| Parameter | PPF | SIP (Mutual Fund) |
| Risk | Very low (government-backed) | Medium (market-linked) |
| Average Return | 7.1% | 12% (estimated) |
| Total Investment | ₹21.6 lakh | ₹21.6 lakh |
| Final Amount | ₹73 lakh | ₹2.11 crore |
| Ideal For | Safety-first savers | Long-term wealth builders |
Clearly, SIP helps you beat inflation and achieve bigger dreams.
Why SIP is a ‘Return Machine’
- SIP works on rupee cost averaging, meaning you buy more units when the market is low and fewer when it’s high.
- Over time, the average cost of your units goes down, and you earn better returns.
- Long-term SIP investments enjoy the benefit of compounding, where you earn returns on your returns.
- SIPs are flexible, and you can increase or pause them as needed.
- SIPs in ELSS funds also offer tax benefits under Section 80C.
Can Anyone Do This?
Yes! Whether you are a salaried employee, self-employed, student, or homemaker, you can start a SIP with just ₹500 per month. But to reach the ₹2 crore goal, you need to stick to the ₹6,000/month formula for 30 years.
If ₹6,000/month seems high today, you can start with ₹2,000 and increase your SIP amount every year as your income grows. This strategy is called a step-up SIP, and it helps you reach your goal faster without pressure.
What to Keep in Mind Before Starting a SIP?
- Choose a well-performing diversified equity mutual fund with a long-term track record.
- Check the fund manager’s experience and AMC reputation.
- Keep a long-term investment horizon, ideally 15+ years.
- Avoid stopping or withdrawing early unless it’s urgent.
- Review your portfolio once a year, not daily.
Words of Caution
SIP returns are not guaranteed. They depend on market conditions. But historical data shows that in 20-30 years, equity funds have outperformed all fixed-income products.
Longer you stay invested, less risk you carry. This is because markets may fluctuate in the short term, but tend to grow steadily in the long run.
Real Wealth is Built Over Time, Not Overnight
While PPF remains a good option for safe and fixed returns, it may not be enough if you want to create wealth, beat inflation, or meet high future expenses like children’s education, home, or retirement.
If you have big dreams and the patience to stay invested, SIPs give you a real chance to become a crorepati — even if you start with as little as ₹200 a day.
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Always consult a certified financial advisor before investing.
Source: Zee Business Hindi
