PPF Investing: Want To Be A Millionaire? Here’s How Much You Need to Save Every Month

New Delhi: In India, there are many government-backed investment schemes that offer good returns without any risk of losing money or with minimal stress. One such investment option – 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 get around Rs 1 crore at the time of maturity.

PPF currently gives guaranteed returns. An investment of up to Rs 1.5 lakh every year in PPF is also eligible to avail tax benefits under Section 80C of the Income Tax Act, 1961.

At present, the government is offering returns at 7.1% per annum interest rate for all investments made under PPF schemes. Compared to fixed deposits which are currently giving 4% to 6% returns, PPF seems to be a better investment prospect.

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

PPF Maturity Age

Investments in PPF usually mature in around 15 years. However, investors can continue to invest in this scheme for every block of 5 years. The extension facility offered by PPF helps investors to multiply the return on maturity manifold. Read also: Apple closes several retail stores in the US due to the COVID-19 surge

How to get Rs 1 Crore on Maturity by investing in PPF?

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

After 15 years of investment, when your plan matures, you will get around Rs 40 lakhs at 7.1% interest rate. However, you will need to continue investing for the next 5 years to grow your investment to around Rs 66 lakh and get closer to Rs 1 crore and become a millionaire. Read also: Who is Amrapali Gan, the Indian-origin CEO of content creation platform OnlyFans?

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