PPF account is a great option for long term investment. Money is safe in this. Also, crores of funds can be prepared from it. This is a better scheme for those who are employed.
Everyone wants to have a good bank balance. Being a millionaire for working people is nothing short of a dream, but your dream can be fulfilled with the Public Provident Fund Account (PPF). By investing in it for a long time, you can easily make a fund of up to 1 crore rupees till retirement. So how to invest in this scheme and what is the whole process, let us know.
What is PPF Scheme
Public Provident Fund is a popular long-term investment scheme. Up to 7.1 percent interest is being received on this scheme. In this, the return is completely tax free. Therefore, tax is not to be paid in maturity amount and interest on it. PPF has a maturity period of 15 years, but you can extend it over a period of 5–5 years. For this extension, Form-H has to be submitted. In this, you can deposit up to 1.5 lakh rupees in a year. There is a lock-in period of 15 years. Meaning that in these 15 years, the investor cannot withdraw money.
How will the crores of funds be made
Suppose someone invested in PPF for 15 years, then the investor invests 1.5 lakh rupees (Rs 12,500 per month) every financial year. To create a fund of Rs 1 crore, forward the PPF account every 5 years. . If you do this for 25 years and the interest rate remains 7.1% for the entire period, then in this case you will get the maturity amount of Rs 1,02,40,260.
Another way may work
You can also try another way to create crores of funds. With this, you can also withdraw some amount if needed. For this, invest for 15 years and after that leave PPF funds. You will continue to get interest during this period and the amount will gradually increase to one crore. You can start this plan with an investment of Rs 6,270 per month. This fund will increase to 21.87 lakh, after which you will not have to invest. Leave it in PPF for 20 years and wait till it is converted into one crore.
