Become a Millionaire Through PPF? Know Your Required Investment!
Become a Millionaire Through PPF? Know Your Required Investment!
PPF (Public Provident Fund) is a tax-free, long-term investment option with compounding benefits.
Opening a PPF Account
Opening a PPF Account
To invest in PPF, you can open an account either at a bank or at your nearest post office. The process is simple, and you will need to provide the necessary documents to open the account.
Investment Flexibility
Investment Flexibility
You can invest in PPF with amounts ranging from Rs 500 to Rs 1.5 lakh. This allows you to choose the investment amount that suits your financial goals.
Becoming a Crorepati with PPF
Becoming a Crorepati with PPF
If you deposit Rs 12,500 monthly in PPF for the next 25 years, you can become a crorepati. Wondering how? Let's explore the calculations.
Maximum Annual Deposit Limit
Maximum Annual Deposit Limit
The maximum annual deposit in PPF is Rs 1.5 lakh, which means you can invest Rs 12,500 per month. This ensures that you maximize your investments within the allowed limit.
Understanding Interest Calculation
Understanding Interest Calculation
Currently, PPF offers an interest rate of 7.1%. According to this calculation, you will earn Rs 65,58,015 as interest over 25 years.
Total Returns
Total Returns
If you add the invested amount and the interest earned, you will have a total of Rs 1,03,08,015.
Tax Benefits
Tax Benefits
PPF also provides tax benefits under section 80C, and you can also avail the benefit of a loan in the third and fifth year of investment.
This is for informational purposes only. Investments are subject to market risks. Past performance doesn't guarantee future results.