Investment Tips: Man wants safe and high returns on his savings. If you also want to make a fund of crores by depositing slowly, then Public Provident Fund (PPF) is for you. This is a government scheme, for which you can open an account by going to the post office or any bank. The current interest rate on this is 7.1 percent. This is its annual return.
Today, the stock market, mutual funds and cryptocurrencies have become bigger investment options than PPF. In these, you can get hundreds of thousands of percent returns in months. Then why would anyone choose to invest in PPF and earn 7.1 per cent annual return.
But what is in PPF, is not in the rest of the options. And that is safety and guarantee of returns. Although both these things happen in a debt fund, but the annual return in it is around 5-6 percent. That’s why PPF is secure and best. But there is no need to worry too much, because PPF can make a millionaire with very little investment. We will tell you its calculation.
Invest only Rs 417 per day
Know how to become a millionaire If you want to become a millionaire, then on a daily basis at 7.1 percent annual interest, you will have to invest only Rs 417 daily in the PPF account. However, you will have to deposit this money, because you should invest not every day, but only once or twice a month. The maturity period of PPF is 15 years, but you can extend it twice for 5 years each. Tax benefits are also available on PPF.
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Investing Rs 12500 every month Now if someone continues to invest in PPF till maturity and invests Rs 1.5 lakh annually i.e. Rs 12,500 every month (daily deposit of Rs 417), then his total investment will be Rs 22.50 lakh. That is, till the time of maturity, he will continue to get the benefit of compound interest at 7.1 percent annual interest. In this way the total interest amount till the time of maturity will be Rs 18.18 lakh. A total of Rs 40.68 lakh will come in the hands of the investor.
Maturity period 15 years
In how much time you will become a millionaire, now you want to become a millionaire, then you have to increase the maturity period of this PPF account twice after 15 years for 5-5 years. Not only this, continue investing Rs 1.5 lakh annually. With this your total investment will be Rs 37.50 lakh. On maturity, you will get Rs 65.58 lakh with an interest rate of 7.1 percent. And after 25 years this amount including interest will be Rs 1.03 crore.
PPF account can be opened for child also
Who can open PPF account Any resident of India whether he is salaried, self employed or pensioner can open PPF account in post office or bank. Only a single individual can open an account under PPF. In this, the facility of opening an account jointly by two people will not be available. The parent can open a PPF account for the child.
These documents will be needed, you will have to provide ID proof to open a PPF account. For this you can give Voter ID, Passport, Driving License or Aadhar Card. Also Voter ID, Passport, Driving License or Aadhar Card will work for address proof. You will need PAN card, passport size photograph and Enrollment Form E.
Tags: investment, PPF, PPF account, Saving, Small Saving Schemes
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