PPF Investment: Investment In Public Provident Fund Can Make You A Crorepati, Here’s How – News18


Curated By: Business Desk

Last Updated: November 04, 2023, 21:04 IST

Long-term investments with meticulous planning can gradually lead you to generate a corpus fund of more than Rs 1 crore.

Long-term investments with meticulous planning can gradually lead you to generate a corpus fund of more than Rs 1 crore.

The PPF scheme is currently offering an interest rate of 7.1%, which is calculated on a compounding basis that eventually results in building an enormous corpus fund.

Becoming a crorepati is a dream for many but all can’t achieve this goal. To realise this dream, investing is one of the best ways. Long-term investments with meticulous planning can gradually lead you to generate a corpus fund of more than Rs 1 crore.

If you are a salaried individual, it’s wise to start investing at an early stage of your employment. The longer you invest, the better returns you can expect. Well, to make things easier, there is a government scheme that can potentially make you a millionaire in 25 years. We’re talking about the Public Provident Fund (PPF), one of the most popular long-term savings schemes.

What is Public Provident Fund (PPF)?

The PPF scheme not only keeps your money safe but also offers higher interest rates compared to traditional savings instruments. PPF is a favourite investment choice, because the money you deposit, the interest earned, and the maturity amount all are entirely tax-free. It’s a secure investment as it’s backed by the government. The scheme is easily accessible as a PPF account can be opened at a participating bank branch or a post office.

PPF Interest Rate and Maturity Period

In the PPF scheme, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually. A PPF account has a maturity period of 15 years. In comparison to fixed deposits in banks and post offices, PPF offers a higher interest rate. As of April 1, 2023, PPF is offering an interest rate of 7.1%. You can open a PPF account for a maximum of 15 years. If you wish to continue it even after maturity, you can extend it in blocks of 5 years .

How to generate Rs 1 crore with PPF investment?

Even a modest monthly investment can potentially make you a millionaire and the formula to success is very straightforward. By depositing only Rs 12,500 in PPF account every month, which amounts to an annual investment of Rs 1.5 lakh, you can generate a corpus fund of Rs 1.03 crore, considering the existing interest rate of 7.1%. However you have to invest regularly for 25 years. Here, the total investment would amount to about Rs 37.5 lakh while the interest component would be close to Rs 65.58 lakh, which is almost double than the actual amount invested.



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