PPF Scheme: Investors can start investing in PPF with just Rs 500, while a maximum investment of Rs 1.5 lakh can be made in a year. The maturity period in this scheme is 15 years and even after maturity, the investment can be carried forward for 5-5 years.
PPF Scheme: Everyone saves small and big amounts from their hard-earned money in the hope that they will not face any financial problems after retirement. However, to achieve this goal, there is a need to invest your savings in the right place. If you also want to collect a huge fund, then you can invest in PPF Scheme.
Safe investment and tax benefits
Investment in PPF Scheme is a profitable deal in the long term. Actually, along with tremendous interest, the government guarantees security on your deposit. The return received on investing in it is absolutely tax free. The benefit of compound interest is also available in this scheme. Along with this, you can avail tax exemption on investment in PPF under section 80C of Income Tax.
You can invest this much every year
Investors can start investing in PPF with just Rs 500, while a maximum investment of Rs 1.5 lakh can be made in a year. The maturity period in this scheme is 15 years, that is, you can invest for this period, but if you want to continue the investment even after maturity, then in such a situation, the facility of extending the PPF account for 5-5 years is also available. However, for this, one has to apply one year before the maturity is completed.
So much profit on investing Rs 5000/month
Now how can an investor save just Rs 5000 every month and save a fund of Rs 42 lakh? Before calculating this, know that this scheme gives interest at the rate of 7.1 percent on investment. By depositing Rs 5000 per month, Rs 60,000 will be deposited in the PPF account in a year and the total deposit amount in 15 years will be Rs 9,00,000. At the same time, according to the fixed interest rate on the amount deposited by you, the interest will be Rs 7,27,284, that is, your deposit fund till then will be Rs 16,27,284.
Now if you extend this fund for 5-5 years, then your total deposit fund will also increase accordingly. That is, if you extend it for 10 years, that is, after 25 years, the total fund including the interest on the amount deposited by you will be around Rs 42 lakh. In this 25 year period, the interest income you will get will be more than Rs 26,00,000.
Loan facility is also available in this scheme
In PPF Scheme, you get the facility of investing in lump sum or in installments. Talking about its other benefits, emergency fund withdrawal can also be done from this scheme with maturity of one year, however, investors cannot withdraw more than 50 percent of the amount. According to the condition laid down for this, the investment period should be 6 years. At the same time, you can also take a loan under it only after investing for 3 years.
