PPF Investment: Want to become a crorepati? Here’s how much you need to save every month


New Delhi: In India, there are several government-backed investment schemes offering decent returns along with no or minimum tension of any risk of losing money. One such investment option – the Public Provident Fund (PPF) – is preferred by many investors looking to save money for long term goals. You can also save money monthly in PPF and can get about Rs 1 crore at the time of maturity. 

PPF currently offers guaranteed returns. Investments of up to Rs 1.5 lakh every year in PPF are also eligible for receiving tax benefits under Section 80C of the Income Tax Act, 1961. 

Currently, the government is offering returns at a 7.1% annual interest rate for all investments made under PPF schemes. In comparison to fixed deposits that are currently offering 4% to 6% returns, PPF appears to be a better investment prospect. 

The returns in PPF are also higher than several schemes operated by government-backed agencies. So, if you’re planning for a long-term investment, you can consider putting your money in PPF. 

PPF Maturity Age 

Investments in PPF usually mature in about 15 years. However, investors can continue investing in the scheme for a block of 5 years each. The extension facility offered by PPF helps investors increase the returns on maturity by manifold. Also Read: Apple shuts several retails stores in US due to COVID-19 surge

How to get Rs 1 crore at maturity by investing in PPF? 

If you invest wisely in PPF, you can rake in Rs 1 crore at the time of maturity by investing a few thousand every month. For this, you will need to invest Rs 1.5 lakh per year, which translates to Rs 12,500 per month. 

After 15 years of investing, when your scheme will mature, you will receive about Rs 40 lakh at a 7.1% interest rate. However, you will need to continue investing for five more years to grow your investment to about Rs 66 lakh and for another 5 years to get close to Rs 1 crore and become a crorepati. Also Read: Who is Amrapali Gan, the Indian-origin CEO of content creation platform OnlyFans?

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