PPF Investment: Invest Rs 100 in this wonderful government scheme, get Rs 10 lakh benefit
PPF Investment: Everyone wants to set aside a portion of their salary in this day and age of inflation and put it somewhere where they will not only get a healthy return but also know that their money is secure. In this instance, the PPF Scheme is very well-liked, and in addition to offering returns of over 7%, the government insures the security of your money. Based on a computation, you may use this government initiative to raise Rs 10 lakh with only Rs 100 daily saved. Let’s discover how…
Benefit of Compounding
There are a lot of these investment programs available in the market that provide excellent returns. But in majority of cases, there’s also a significant risk factor. However, investing in PPF has no risk since your money is protected by the government. The investor may choose to prolong this account beyond its 15-year maturity date. In addition to this, compounding—yes, the return on investment in PPF is calculated using compound interest—is another advantage that solidifies its reputation as the finest choice.
How much to Invest?
You may start investing with as little as Rs 500 per year by creating an account with this government plan, and you can deposit up to Rs 1.50 lakh yearly. An interest rate of 7.1 percent is supplied if we examine the interest rate on investment in this. Still, the government continues to alter it. What makes this program unique is that it offers higher interest rates than many banks’ fixed deposit (FD) schemes.
Upon examining the computation of obtaining Rs 10 lakh with daily savings of Rs 100, you may save Rs 3000 every month, which equates to Rs 36,000 in savings over a year. According to the PPF calculator, you would get a total of Rs 9,76,370 if you invested in this way for the whole 15-year maturity term. You would be investing Rs 5.40 lakh in this, and the government will be giving you Rs 4,36,370 in interest.
How Much Profit Will You Get in 20 Years?
Since you may now keep your PPF investment after it matures, if you keep it for five years, you will get returns that are more than twice what you would have if you had stopped the investment earlier. In these 20 years, you will invest a total of Rs 7,20,000, and the interest alone will provide you Rs 8,77,989 in earnings. In this case, saving merely Rs 100 per day would result in a wealth of Rs 15,97,989 after 20 years.
