₹10,000 a month for 15 years is ₹18 lakh of your money. Here is what three common choices could turn it into, before and after tax.
| Option | Assumed return | Value after 15 years | After tax | Risk |
|---|---|---|---|---|
| Equity mutual fund SIP | 12% (10% cautious) | ₹50.46 lakh (₹41.79 lakh) | ₹46.4 lakh | Market risk; can fall 30%+ in a bad year |
| PPF | 7.1% | ₹32.55 lakh | ₹32.55 lakh (tax-free) | Government-backed |
| Bank RD / FD | 7% | ₹31.77 lakh | ₹27.47 lakh (30% slab) | Bank deposit, insured to ₹5 lakh |
PPF limited to ₹1.5 lakh a year, so ₹10,000 a month (₹1.2 lakh) fits. SIP tax assumes all units sold at the end as long-term gains (12.5% above ₹1.25 lakh, plus cess); in practice you would spread sales across years and pay less. RD interest is taxed every year at your slab.
How to read this
- SIP can grow the most, but only if you stay invested through falls. It suits goals more than 7 years away.
- PPF is the best guaranteed, tax-free option for long goals, especially in the 20–30% slab, but money is locked for 15 years.
- RD/FD is for money you need within 3 years. After tax and inflation, its real return is close to zero for higher-slab taxpayers.
Many people split: PPF for a safe base, SIP for growth, FD for the emergency fund.