Investment Tips: People want their savings safe and high returns. If you also want to create a fund of crores of rupees by gradually accumulating, then the Public Provident Fund (PPF) is for you. This is a government scheme for which you can open an account at the post office or any bank. The current interest rate is 6.1 percent. This is his annual return.
Today, stock markets, mutual funds and cryptocurrencies have become larger investment options than PPFs. With these you can get a few thousand percent return per month. So why would anyone want to invest in PPF and get an annual return of 7.1 percent.
But what is in the PPF, there is no other option. And that is security and guarantee of return. Although both of these occur in debt funds, the annual return is about 5-6 percent. So PPF is safe and best. But there is no need to worry too much, because PPF can make a millionaire with very little investment. We will tell you the calculation.
Invest only 417 rupees per day
Learn How To Become A Millionaire If you want to be a millionaire, on a daily basis at 7.1 percent annual interest, you need to invest only Rs 417 daily in a PPF account. However, you should save this money, because you should invest once or twice a month, not every day. The maturity of PPF is 15 years, but you can double it to 5 years. Tax benefits are also available in PPF.
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Investing Rs 12,500 per month Now if one continues to invest in PPF till maturity and invests Rs 1.5 lakh per annum i.e. Rs 12,500 per month (daily deposit Rs 417), his total investment will be Rs 22.50 lakh. That is, he will continue to receive compound interest at 7.1 per cent per annum till maturity. Thus, the total interest till maturity will be Rs. 18.18 lakhs. A total of Rs 40.68 lakh will come into the hands of investors.
Maturity period is 15 years
How long will it take you to become a millionaire, now you want to be a millionaire, then you need to double the maturity period of this PPF account after 15 years for 5-5 years. Not only that, continue to invest 1.5 lakh rupees annually. With this your total investment will be Rs 37.50 lakh. On maturity, you will get Rs 65.58 lakh with 7.1 per cent interest rate. And after 25 years this amount including interest will be 1.03 crore.
A PPF account can also be opened for a child
Who can open a PPF account? Any resident of India can open a PPF account at a post office or bank, whether he is a salaried, self-employed or a pensioner. Only one person can open an account under PPF. It will not be possible for two people to open a joint account. Parents can open a PPF account for their child.
These documents will be required, you will need to provide ID proof to open a PPF account. For this you can give voter ID, passport, driving license or Aadhaar card. Also work to prove voter ID, passport, driving license or Aadhaar card address. You will need PAN card, passport size photo and enrollment form e.
Tags: investment, PPF, PPF account, Save, Small savings scheme