PPF SCHEME: If you’re considering investing, the government’s PPF scheme can be extremely useful. Currently, the scheme is very popular among investors. Investors can secure their future by investing in this scheme based on their savings. The investment period for this scheme is set at 15 years. This investment also offers tax benefits. Investors can earn up to ₹1.5 lakh in a financial year, along with a tax-free maturity amount.
This scheme is ideal for investors who are risk-averse and want a guaranteed return. Let’s explain how you can easily accumulate up to ₹2.5 million in this scheme and how many thousand rupees you’ll need to invest monthly.
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This is all you need to invest
For your information, the PPF scheme currently offers an interest rate of 7.1%. To accumulate ₹25 lakh with this interest rate, you need to invest ₹7,750 monthly. This will bring the total investment to ₹93,000. Consequently, the total investment over 15 years will be ₹13,95,000. After 15 years, the maturity amount will be ₹25,22,290. The total return will be ₹11,27,290. It also earns compound interest annually.
These benefits are available in PPF
PPF earns annual compound interest on interest. However, it is calculated based on the lowest balance between the 5th and the last day of the month. This means that depositing before the 5th helps maximise returns.
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The effect of compounding is even greater in the long term. PPF is also great because it is risk-free, with guaranteed returns, good tax benefits under Section 80C, stable growth over the long term for retirement, education planning or financial security, and provides relief from market fluctuations.