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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.
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:
Even after 30 years, PPF doesn’t cross the ₹1 crore mark.
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.
Even with moderate returns, SIPs beat PPF by a huge margin.
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:
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.
| 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.
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.
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.
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
