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Want to Become a Crorepati When You Retire? Invest Rs 417 Daily Here


Public Provident Fund Scheme: Investors in India are at the moment not to inclined towards investing in stocks since the market has been volatile for the past few sessions. This is the perfect opportunity for those who want to get stable and high returns without having to worry about market movements to opt for government savings schemes. The Public Provident Fund, or PPF, launched by the Indian government, is one of the several such small savings schemes that not only offers stable and high returns, but also offers tax savings option.

PPF Features, Interest Rate, Benefits Explained

Investors can invest as low as Rs 500 per year, and as high as Rs 1.5 lakh per year, in their PPF accounts. The Public Provident Fund, or PPF is one of the most highest rates of interest-paying risk-free schemes in India. PPF interest rate is 7.1 per cent at the moment, far higher than bank FDs. PPF is also one of the very few EEE schemes, where the investment, interest and the corpus is totally tax free.

Investors can invest their money in their PPF account for as many as 15 years in a row, as per the guideline. However, if one does not need the money at the end of 15 years, he or she can can extend the tenure of the PPF account for as many years as needed. This can be done in blocks of five years by submitting a PPF Account Extension Form.

Become a Crorepati by Investing in PPF Account: See How

With good interest returns, high popularity, low risk and tax free nature, the PPF can also help investors accumulate as much as Rs 1 crore if they invest properly. For this, investors have to follow the method mentioned below.

If you invest Rs 417 a day in your PPF account, the monthly investment value comes to around Rs 12,500. This means that per year, you are investing a little more than Rs 1,50,00 in your Public Provident Fund account, which is the maximum limit. In 15 years, the total amount accumulated will be Rs 40.58 lakh, and thereafter you have to extend the tenure twice in block of five years each.

If you keep doing this from the age of 35 up to the age of 60, that is for 25 years, the amount that you will get during maturity will be as much as Rs 1.03 crore lakh. This amount will be totally tax free and the total interest earned will be nearly 66 lakh. The total amount you would have deposited in 25 years till your retirement age will turn out to be around Rs 37 lakh.

On this note, it must also be mentioned that the best way to get higher returns on your investment is to deposit the money between the 1st to 5th of every month as the interest is calculated monthly.

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