Everyone wants to save some of their earnings and invest it in such a place where apart from keeping their money safe, they also get strong returns. These things are especially important in the investment plans of employed people. In this case, the Public Provident Fund i.e. PPF scheme run by the government is very popular. The special thing is that if you save only Rs 416 daily and invest in this government scheme, then you can become a millionaire in a few years. Let us understand its calculation…
Getting excellent interest of 7.1%
PPF Scheme is a scheme of the government which gives amazing benefits. In this, the guarantee of keeping the money safe is given by the government itself. If we talk about interest rate, then investors investing in it are currently getting interest rate at the rate of 7.1 percent. If you want to accumulate a huge fund for your future, that is, you do not have to face shortage of money after retirement, then investing in this scheme will prove to be a profitable deal.
You can start investing from Rs 500
Talking about starting investment in Public Provident Fund Scheme, then you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually. The maturity period of this scheme is 15 years, but it can be extended for another five years. Only this formula of extending your investment in this scheme beyond maturity can make you a millionaire.
This is how the dream of becoming a millionaire will be fulfilled
Now let us talk about how you can fulfill your dream of becoming a millionaire by saving just Rs 416 daily, then let us tell you that its calculation is very simple. Actually, if you save this much amount daily, then Rs 12,500 will be collected every month and you will have Rs 1.5 lakh annually.
If you invest this amount in the PPF Scheme and extend it for 10 years after maturity, that is, instead of withdrawing the deposited amount till maturity, you extend it for five years, then your investment will return in 25 years. It will exceed Rs 1 crore. Yes, if you calculate on the basis of 7.1 percent interest, then at the time of maturity after 25 years you will have Rs 1,03,08,015.
You can also take advantage of tax exemption
This scheme has gained immense popularity as a retirement plan. Along with this, there are many other benefits of investing in it. You can save tax through this. In PPF Scheme, tax benefits are also available under Section 80C of Income Tax. Apart from this, you can invest in this scheme in lump sum or in installments. The most important thing is that the investment in PPF Investment, the interest received and the amount received on maturity are completely tax free.