You too can build a large fund by saving less money every month. In that case, the investor will get compound interest. Find out what those schemes are.
Indian investors are not only looking for good returns, but also looking for investment options that will keep their money safe and build a large fund. This scheme is ideal for those who want to save a little every month to build a significant fund for the future.
Which scheme to invest in
It is very important for investors to have a safe and secure scheme. If you are planning to invest in such a scheme, then Public Provident Fund (PPF) can be a good option. This government scheme ensures both safety and returns. Investors can build a large fund by investing little by little. Let’s know more details here.
PPF Investment Rules and How Much Will You Get on Maturity
Public Provident Fund (PPF) is a government scheme, which has a tenure of 15 years. During this period, investors have to deposit a certain minimum amount of money in their account every year. The minimum annual investment in PPF starts from Rs 500. The maximum annual investment amount is Rs 1.5 lakh. Investors in this scheme get interest at the rate of 7.1% per annum.
After the maturity of 15 years, investors can extend the PPF scheme twice for 5 more years. This means that investors can invest in this scheme for up to 25 years. If the money is not withdrawn after maturity, interest continues to accrue.
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Build a fund of Rs 13 lakh by investing Rs 4,000
You can build a significant fund by investing in PPF scheme. Let us explain this with the help of an example. Suppose, you start depositing Rs 4,000 every month in PPF scheme. In a year, your investment will turn into Rs 48,000.
Thus, if you continue investing for 15 years, your total investment will reach Rs 7.20 lakh. At the current interest rate of PPF, you can get around Rs 13.01 lakh at maturity. Which means, you will get a profit of around Rs 5.81 lakh. Your small investment can turn into a huge fund.
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