Public Provident Fund (PPF): Here's How You Can Earn Rs 1 crore Through Investing

Public Provident Fund (PPF): When you think of investment schemes offering guaranteed returns, you think of options that can give you steady returns, keep you away from market risks, and help you achieve financial freedom Investing in the Public Provident Fund (PPF) can indeed pave the way towards accumulating a retirement corpus exceeding Rs 1 crore, even with modest contributions. Let's break down the process step by step based on different investment amounts:

PPF: Step-by-Step Guide to Earn Rs 1 Crore Through Investing

1. Minimum/Maximum Investment:

• Minimum: Rs 500 per year.
• Maximum: Rs 1.50 lakh per financial year.

2. Maturity Period:

• PPF has a fixed maturity period of 15 years.
• After maturity, it can be extended in blocks of 5 years.

3. Interest Rate:

• Presently fixed at 7.1%.
• Compounded annually, aiding faster growth over the long term.

4. Tax Exemption:

• Investments up to Rs 1.50 lakh are eligible for tax exemption under Section 80C.
• The entire corpus including interest is tax-free.

Scenario 1: Rs 12,500 Monthly Investment

• Start investing at 30 with Rs 1.50 lakh annually (Rs 12,500 monthly).
• After 15 years, the corpus grows to Rs 66.58 lakh.
• Continue for another 5 years for a corpus exceeding Rs 1 crore by age 55.

Scenario 2: Rs 10,000 Monthly Investment

• Start at 25 with Rs 1.20 lakh annually (Rs 10,000 monthly).
• After 15 years, the corpus reaches Rs 53.27 lakh.
• Extend for 5-year blocks, achieving over Rs 1 crore by age 55.

Scenario 3: Rs 7,500 Monthly Investment

• Begin at 20 with Rs 90,000 annually (Rs 7,500 monthly).
• After 15 years, the corpus stands at Rs 39.50 lakh.
• Extending for 5-year blocks, surpassing Rs 1 crore by age 55.

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In each scenario, starting earlier and consistently investing yields significant returns. It showcases the power of compounding, turning modest contributions into substantial wealth over time.

Investing in PPF not only provides security and tax benefits but also offers a viable path towards achieving long-term financial goals, including a comfortable retirement.

(Disclaimer: The information provided in this guide is for educational and informational purposes only. It is not intended as financial advice or as a recommendation to invest in any specific financial product or strategy. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. While efforts have been made to ensure the accuracy of the information presented, no guarantee is made regarding its completeness or suitability for any particular purpose. Investing involves risk, and past performance is not indicative of future results. The author and publisher shall not be liable for any losses or damages arising from the use of this information.)

Note: Details mentioned here are as per the information available.?

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