PPF Investment: To become a millionaire requires constant investment along with money, there is no rocket science in it. If you do not know about the stock market, you do not know about mutual funds, even then you can deposit a fund of crores of rupees for yourself.
New Delhi: PPF Investment: To become a millionaire requires constant investment along with money, there is no rocket science in it. If you do not know about the stock market, you do not know about mutual funds, even then you can deposit a fund of crores of rupees for yourself. You do not have to invest much more in just a few rupees every month in the Public Provident Fund. If you keep investing in the manner described, then you will already become a millionaire before retirement.
PPF is a long-term investment
Public Provident Fund i.e. PPF is considered a better option for long term investment, in which you get good returns. In PPF, you can invest up to Rs 1.5 lakh in a year, that is, Rs 12,500 a month. If you want to become a millionaire, then you have to know how much you will have to invest every month and till when.
7.1% interest on PPF
At present, the government pays an annual interest of 7.1% on the PPF account. Investment in this is done for 15 years. According to this, the total value of the investment of Rs 12500 a month will be Rs 40,68,209 after 15 years. The total investment in this is Rs 22.5 lakhs and interest is Rs 18,18,209.
Funds of one crore rupees will be deposited in this way
Case No. 1 –
Suppose you are 30 years old at the moment and you have started investing
in PPF. After depositing Rs . 12,500 in PPF every month for 15 years, you will have Rs. 40,68,209,
now this money is not withdrawn , you Keep the PPF moving for a period of 5-5 years
i.e. after 15 years, invest 5 more years, that is, after 20 years, this amount will be – Rs 66,58,288
when it is 20 years, then invest for the next 5 years. Go ahead, that is, after 25 years, the amount will be – Rs 1,03,08,015
Here you become a millionaire. That is, if you invest 12,500 rupees every month in PPF at the age of 30, then after 25 years, you must have become a millionaire at the age of 55 years. Explain that the maturity of PPF account is 15 years. If the matter is to extend this account for 15 years, then according to five-five years this account can be extended for further years.
Case No. 2 –
If you want to invest a little less money in PPF instead of Rs. 12500 but want to become a millionaire at the age of 55, then you have to start a little earlier
Suppose you started
depositing Rs 10,000 every month in PPF account at the age of 25 , according to 7.1 percent, after 15 years you will have total value – Rs 32,54,567,
now forward it again for 5 years, then 20 After the year, the total value will be – Rs 53,26,631, carry
it forward again for 5 years, after 25 years the total value will be – Rs 82,46,412 will be carried
forward again for 5 years, i.e. after 30 years the total value will be 1,23,60,728 rupees
means you will become a millionaire at the age of 55 years.
Case No. 3
If you deposit only 7500 rupees in PPF instead of 10,000 rupees, you will still become a millionaire by the age of 55, but you will have to start investing at the age of 20 years.
If you deposit 7500 rupees in PPF at 7.1% interest for 15 years, then the total value will be – Rs 24,40,926 if you
extend it for 5 years, that is, after 20 years, this amount will be – 39,94,973 for
5 years and further, that is 25 After years, this amount will be – Rs 61,84,809, after
5 years, this amount will be increased after 30 years – Rs 92,70,546 after
5 years and if you continue the investment, after 35 years, the amount will be – 1,36,18,714 Rupees
That is, when you are 55 years old, you will have an amount of more than one and a quarter crore rupees. Remember that the trick to becoming a millionaire is that you take advantage of PPF compounding, start investing early and keep investing with patience.
