If you want to create a fund of ₹ 1 crore without any risk, then nothing can be better than the Public Provident Fund (PPF). PPF not only guarantees good returns, but it is also completely safe. The infallible formula of ’15+5+5′ will work to make money from the PPF scheme.
Actually, after investing in the PPF scheme for 15 years, you can become a millionaire by extending it twice for 5-5 years. So let’s understand how this ’15+5+5′ formula of PPF can fulfill your dream of becoming a millionaire! This is a powerful strategy that can provide you with financial security and prosperity in the long term.
PPF will make you a millionaire
If you also want to live a comfortable life by accumulating a good fund, then PPF (Public Provident Fund) is a great option for you. By investing regularly in PPF, you can gradually become a millionaire. However, to invest in PPF, follow the ’15+5+5′ formula.
This means, first invest regularly for 15 years, then take an extension for 5 years and then extend it again for 5 years. By making a strategy like this, your investment can be more than ₹ 1 crore. So let’s understand this special formula of PPF in detail.
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How will investors become millionaires with PPF?
If you want to become a millionaire without any risk, then the Public Provident Fund is going to be the best option for you. PPF gives tax savings and great returns along with guaranteed security. By adopting the ’15+5+5′ formula in this, you will take advantage of tax savings.
However, to create a fund of ₹ 1 crore in PPF, an extension of 5-5 years is most important, only then you can easily create a fund of ₹ 1 crore with this formula. This scheme is especially attractive for those who want to keep their hard-earned money safe and also want to get good returns on it.
PPF’s ’15+5+5′ formula
The ’15+5+5′ formula of PPF investment can help you build a big fund. The basic tenure of a PPF account is 15 years. However, if you extend it twice for 5-5 years, you can make the fund stronger. Yes, if you continue investing for 15+5+5 i.e. 25 years, then due to the effect of compounding (compound interest), your investment can grow manifold, creating a fund of crores of rupees. This formula shows the power of long-term investment.
Easy math to become a millionaire through PPF
Suppose you are 25 years old now and you invest ₹ 1.5 lakh in PPF every year, then in 15 years your total investment will be ₹ 22.5 lakh. At an annual interest rate of 7.1%, this amount will grow to around ₹40 lakh. If you extend this twice for 5 years each, the magic of compounding can make your amount grow to ₹1 crore or even more.
To understand the calculation of the ’15+5+5′ formula, you need to invest continuously for 15 years and then extend it twice for 5 years each. As per the current interest rate of 7.1% annual compounding, investing ₹1.5 lakh every year, the total investment in 15 years will be ₹22.50 lakh. On this investment, you will get a corpus of around ₹40.68 lakh.
If you extend this account for another 5+5 years, the total investment in 25 years will be ₹37.50 lakh. Including returns, you will get a fund of around ₹1.03 crore. In this fund, ₹65.58 lakh will come from interest alone. That is, now you must have understood how easy it is to become a millionaire with the ’15+5+5′ formula.
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