New Delhi: Investors who are planning to invest in a safe investment instrument offering decent returns can check the option of Public Provident Fund (PPF). Investing a minimum of Rs 34 per day, which roughly translates into Rs 1000 per month, in the state-sponsored investment plan can help you turn your investment into lakhs of rupees if you invest smartly.
PPF investment also offers income tax benefits on the interest earned and on the final maturity amount on PPF deposits. At present, the Indian government is offering a 7.1% interest rate on PPF investments. Since 2020, the government has kept the PPF interest rates unchanged.
Investment in PPF usually matures after 15 years of investing. At the end of 15 years, investors can decide if they want to withdraw the funds or can let the funds grow for a minimum tenure of five years. You can also keep on investing during the extended tenures to witness your money grow in a snap with the power of compounding.
Here’s how you can make Rs 26 lakh by investing Rs 34 daily:
Investors can start investing Rs 1000 per month or Rs 34 daily in the PPF scheme to get lakhs of rupees before their retirement. For instance, if you’re 25 years old, you can start investing Rs 1000 right now.
At the end of the 15 years, your monthly investments in your PPF account will turn into Rs 3.25 lakhs, out of which Rs 1.80 lakh will be your investment and Rs 1.45 lakh will be the interest on your investment.
You can now decide to continue investing in the scheme for the next five years, after which your investment will turn into Rs 5.32 lakh. Extending the policy for 5 more years will increase your investment to Rs 8.24 lakh.
At this point, you need to continue your investments in the PPF scheme. At the end of this five-year tenure, your investment will turn into Rs 12.36 lakh. And finally, if you invest for five more years, your investment will turn increase to Rs 18.15 lakhs. Also Read: Tata Motors to gift Tata Altroz to Indian athletes who missed bronze at Tokyo Olympics
This means that you’ll receive more than Rs 18 lakh after investing Rs 34 every day for about 35 years in the Public Provident Fund. Also Read: Zoom launches ‘Focus Mode’ to let students attend distraction-free virtual classes