Investment Scheme: Everyone dreams of earning a lot of money from home. But if we tell you that you can accumulate a tax-free amount of over Rs 40 lakh in your account over the next 15 years without any risk, without the fluctuations of the stock market, and without any stress, it would seem nothing short of magical.
If you want to earn a large sum over the long term through safe investments, the government’s Public Provident Fund (PPF) scheme is the best option for you. Amidst rising inflation and market fluctuations, PPF is a method that provides safe and good returns to the average Indian. With proper planning and regular investment, you can accumulate a substantial amount of over Rs 40 lakh in 15 years.
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What is PPF, and why is it beneficial?
PPF, or Public Provident Fund, is a long-term investment scheme run by the government. It is ideal for those who are risk-averse and looking for secure returns. Your money is completely safe in this scheme, and you receive government-determined interest every year. Currently, PPF offers an annual interest rate of 7.1%.
How to Build a Fund Worth Lakhs in 15 Years
PPF has a maturity period of 15 years. You can invest a minimum of ₹500 and a maximum of ₹1.5 lakh annually. If an investor deposits a maximum of ₹1.5 lakh annually, they can receive a tax-free corpus of over ₹40 lakh at the end of 15 years. This amount is completely safe because it is not affected by market fluctuations.
Excellent Tax Saving Option
PPF is one of the few schemes in India that falls under the EEE (Exempt-Exempt-Exempt) category. This means that the investment is tax-deductible (up to ₹1.5 lakh under Section 80C), the interest is tax-free, and the entire maturity amount is tax-free. This is why PPF is considered the best safe tax-saving option.
Who can open a PPF account?
Any Indian citizen can open a PPF account in their own name. Accounts can also be opened in the name of children, which will be operated by their parents. However, NRIs cannot open a new PPF account, but existing accounts can continue until maturity.
Loan facility is also available
PPF not only allows for deposits, but also allows for loans between the third and sixth years, if needed. This facility helps investors meet unexpected expenses.
Disclaimer: This article is for informational purposes only. It does not constitute investment advice. If you are considering investing, please consult an expert.