PPF Investment: The biggest advantage of investing in Public Provident Fund (PPF) is not only the great returns but also that the government itself guarantees the safety of your money invested in it. The maturity period of this scheme is 15 years.
PPF Investment: In today’s time, in this era of inflation, everyone wants to save some of their income and invest in such a place where they not only get a strong return but also the money is safe. In this case, PPF Scheme is quite popular and along with getting more than 7 percent return, the government itself guarantees the safety of your investment. If you look at a calculation, you can raise Rs 10 lakh through this government scheme by saving just Rs 100 every day. Let’s know how…
Benefit of 15 years maturity and compounding
In terms of investment, there are many such schemes available in the market, which are offering great returns. However, the risk factor is also high in most of them. But there is no chance of risk in PPF investment, rather the government itself protects your investment. This account matures in 15 years and if the investor wants, he can extend it further. Apart from this, another benefit makes it popular as the best option, which is compounding, yes, the return on investment in PPF is given according to compound interest.
Minimum investment of Rs 500
By opening an account in this government scheme, you can start investing with just Rs 500 annually and can deposit a maximum of Rs 1.50 lakh in a year. If we look at the interest rate on investment in this, an interest rate of 7.1 percent is offered. However, it keeps getting changed by the government. The special thing is that by investing in this scheme, you can get more interest than the fixed deposit (FD Scheme) of many banks.
Now if we look at the calculation of getting Rs 10 lakh by saving Rs 100 daily, then according to this, you can save Rs 3000 every month and according to this, your one year savings will be Rs 36,000. Now if we look at the PPF calculator, if you invest in this manner till the maturity period of 15 years, then you will get a total of Rs 9,76,370. In this, the investment made by you will be Rs 5.40 lakh, while the interest given by the government will be Rs 4,36,370.
You will get Rs 15 lakh in 20 years
Now as told that you can extend your PPF investment even after maturity, so in such a situation, if this investment is continued for 5 years, then more than double returns will be obtained. You will invest a total of Rs 7,20,000 in these 20 years and you will get Rs 8,77,989 from the interest alone. In such a situation, by saving just Rs 100 per day, you will have a fund of Rs 15,97,989 in 20 years.
