PPF: Want to earn a good amount of money? But don’t know how? Then this article is for you. If you’re looking to build a fund of Rs 1 crore without taking any risks, the Public Provident Fund (PPF) is an excellent choice. PPF not only offers security but also provides attractive returns. The 15+5+5 strategy is key to maximizing your earnings through this scheme. Essentially, by investing in PPF for 15 years, you can become a millionaire by extending your investment for two additional 5-year periods. Let’s dive into how this 15+5+5 approach can help you achieve your millionaire dreams.
For those who aspire to enjoy a comfortable lifestyle through smart savings, the PPF (Public Provident Fund) is a fantastic option. By consistently investing in PPF, you can steadily work your way to becoming a millionaire. To do this effectively, follow the 15+5+5 formula: start with 15 years of regular contributions, then extend for 5 years, and finally, extend again for another 5 years. This strategy can help you surpass the Rs 1 crore mark. Now, let’s break down this PPF formula.
How investors can achieve millionaire status with PPF
If your goal is to become a millionaire without any risk, the Public Provident Fund is your best bet. PPF not only ensures safety but also offers tax benefits and impressive returns. By applying the 15+5+5 formula, you can enjoy tax savings while working towards that Rs 1 crore fund. Remember, extending your investment for two additional 5-year periods is crucial to reaching that goal.
Understanding the 15+5+5 formula of PPF
The 15+5+5 investment strategy for PPF can significantly boost your savings. A PPF account has a basic term of 15 years, but by extending it for two additional 5-year periods, you can strengthen your fund. If you commit to investing for a total of 25 years (15+5+5), the power of compounding can greatly enhance your investment, potentially leading to a fund worth crores.
If you’re 25 and decide to invest Rs 1.5 lakh annually in a PPF, after 15 years, your total investment will amount to Rs 22.5 lakh. With an interest rate of 7.1% per year, this could grow to around Rs 40 lakh. If you keep it going for an additional 5 years, and then another 5 years, thanks to the power of compounding, your total could exceed Rs 1 crore.
To break down the 15+5+5 strategy, you need to invest consistently for 15 years, then extend it for two additional 5-year periods. With the current annual compounding interest rate of 7.1%, your yearly investment of Rs 1.5 lakh over 15 years will total Rs 22.5 lakh. This will yield a corpus of approximately Rs 40.68 lakh. If you keep the account open for another 5+5 years, your total investment over 25 years will be Rs 37.5 lakh. Including the returns, you could end up with around Rs 1.03 crore, with Rs 65.58 lakh coming from interest alone. So, it’s clear that the 15+5+5 formula can help you become a millionaire!
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.