Curated By: Business Desk
Last Updated: November 04, 2023, 21:04 IST
Long-term investments with meticulous planning can regularly lead you to generate a corpus fund of greater than Rs 1 crore.
The PPF scheme is presently providing an rate of interest of seven.1%, which is calculated on a compounding foundation that ultimately ends in constructing an unlimited corpus fund.
Becoming a crorepati is a dream for a lot of however all can’t obtain this aim. To realise this dream, investing is likely one of the greatest methods. Long-term investments with meticulous planning can regularly lead you to generate a corpus fund of greater than Rs 1 crore.
If you’re a salaried particular person, it’s sensible to start out investing at an early stage of your employment. The longer you make investments, the higher returns you possibly can anticipate. Well, to make issues simpler, there’s a authorities scheme that may probably make you a millionaire in 25 years. We’re speaking concerning the Public Provident Fund (PPF), one of the crucial common lengthy-time period financial savings schemes.
What is Public Provident Fund (PPF)?
The PPF scheme not solely retains your cash secure but in addition provides increased rates of interest in comparison with conventional financial savings devices. PPF is a favorite funding selection, as a result of the cash you deposit, the curiosity earned, and the maturity quantity all are fully tax-free. It’s a safe funding because it’s backed by the federal government. The scheme is well accessible as a PPF account will be opened at a taking part financial institution department or a put up workplace.
PPF Interest Rate and Maturity Period
In the PPF scheme, you possibly can make investments a minimal of Rs 500 and a most of Rs 1.5 lakh yearly. A PPF account has a maturity interval of 15 years. In comparability to mounted deposits in banks and put up places of work, PPF provides a better rate of interest. As of April 1, 2023, PPF is providing an rate of interest of seven.1%. You can open a PPF account for a most of 15 years. If you want to proceed it even after maturity, you possibly can lengthen it in blocks of 5 years .
How to generate Rs 1 crore with PPF funding?
Even a modest month-to-month funding can probably make you a millionaire and the formulation to success could be very easy. By depositing solely Rs 12,500 in PPF account each month, which quantities to an annual funding of Rs 1.5 lakh, you possibly can generate a corpus fund of Rs 1.03 crore, contemplating the present rate of interest of seven.1%. However it’s important to make investments commonly for 25 years. Here, the full funding would quantity to about Rs 37.5 lakh whereas the curiosity part can be near Rs 65.58 lakh, which is sort of double than the precise quantity invested.
