News India Live, Digital Desk: Ppf calculator: When the PPF (Public Provident Fund) was introduced in 1968, its purpose was to convert small contribution from families into long-term investment. Even those who had no employment, they could expect to make a good amount with this instrument. Investment experts have long advised that people who are looking for a safe investment option to get guaranteed returns with the benefits of tax savings should choose PPF.
The initial lock-in period of the PPF account is 15 years. A specialty of PPF is that it can also be opened for a minor. If the minor continues it even after growing up, it will continue to increase investment for a long time. But if a person opens a PPF account even after starting earning, then he can easily reach Rs 1 crore. Just need: disciplined investment for years.
How to get 1 crore rupees in PPF?
It is difficult to believe that a person can deposit more than Rs 1 crore in PPF-a means that sometimes lacks high returns in equity or mutual funds. However, if you put a generous dose of discipline in PPF, it can give very definite results, and since this instrument has guaranteed returns and sovereign guarantee, you can do it with certainty. Let’s see how. Would you believe that if someone can invest a minor investment of Rs 4,000 every month in a PPF account, he can deposit Rs 1,05,31,091 in 40 years. If you can increase the investment slightly to Rs 5,000 and continue it for 37 years, then the amount in the PPF account will be Rs 1,05,47,231.
Consider another landscape. The parents of a child open the PPF minor account in the first year of the child’s birth. Suppose parents invest only Rs 2,000 in it every month. Let us also assume that the child continues investing even after being an adult and starts earning. Would you believe that this minor investment will accumulate more than Rs 1 crore in PPF account after 50 years or when the child is 50 years old – in fact Rs 1,08,12,158. This work is done by long -term compound interest. In fact, by depositing Rs 1,900 every month in PPF account, you can get more than Rs 1 crore in 50 years.
How much will I get after 15 years in PPF?
The initial lock-in period of PPF is 15 years. Let us see how much one can get in 15 years with an annual investment of Rs 1.5 lakh, which is maximum in a financial year (according to Section 80C of the Income Tax Act). If you invest Rs 1.5 lakh annually, and do this for 15 years, then you will get a total maturity price of Rs 40,68,209. However, it is always advisable that a person seeks the help of a personal finance advisor to determine when he should open the PPF account and how much he will contribute to it. A maximum of Rs 1.5 lakh can be invested in PPF account in a financial year.
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