How much larger is the coast corpus if I use PPF (7.1%) instead of equity (12%)?
Scenario
Same Priya as above — same target corpus, same target age, but assumes a 100% PPF accumulation instead of equity
Inputs
- Ppf rate %
- 7.1
- Target corpus INR
- 5,71,00,000
- Years to compound
- 20
- Equity assumed %
- 12
Calculation
- 1.
Coast corpus needed at 12% (equity baseline)
₹5.71Cr ÷ (1.12)^20 → ₹59.20 L
- 2.
Coast corpus needed at 7.1% (PPF FY 2026-27 rate)
₹5.71Cr ÷ (1.071)^20 → ₹1.45 Cr
- 3.
Ratio of PPF coast corpus to equity coast corpus
₹1.45Cr ÷ ₹60L → 2.45x
Conclusion
A PPF-only path requires ~2.4× more capital at the coast point than an equity-only path — because the lower return compounds less aggressively over the 20-year coast phase.
Tradeoffs
PPF is tax-free (EEE) so its 7.1% is effectively 10%+ pre-tax for a 30% slab investor. Equity LTCG is 12.5% above ₹1.25L annual exemption. A blended portfolio of equity + PPF + NPS typically lands in the 9–11% range, giving an intermediate coast corpus.