By investing this amount every year, it will be Rs. at the end of 15 years. Earn profit of more than 24 lakhs, know how?

Post Office PPF Scheme: Various post office schemes can act as great wealth generators for those seeking safe investments and guaranteed returns. For long-term investors, you can take advantage of the special Public Provident Fund Scheme of the Post Office. In which interest is payable at the rate of 7.1 percent per year.

investment for ppf

To avail the benefits of PPF scheme, the investor has to invest a minimum amount of Rs. Will have to invest. Rs 500 and above You can invest up to Rs 1.5 lakh. In which you also get the benefit of tax concessions. The maturity period of this scheme is 15 years.

Annual Rs. So much profit on an investment of Rs 90 thousand!

For example you can spend Rs. Can spend. 250 i.e. Rs. per month. Invested Rs 7500 in PPF. So at the end of the year your PPF account will have Rs. 90 thousand will have to be deposited. In which the total amount for 15 years is Rs. An investment of Rs 13,50,000 will have to be made. If interest is calculated at the rate of 7.1 percent per annum, the total amount will be Rs. There will be a profit of Rs 10,90,926. That means in fifteen years you will get Rs. Can create wealth worth Rs 24,40,926.

Tax Concessions:

PPF is a good option for tax saving. Covered under EEE category (Exemption Exemption – Tax Exemption). In which the benefit of tax deduction is available on the investment made every year. Also, the profit at the end of maturity is also tax free. This scheme saves tax on investment, interest and returns.

loan facility

PPF account holders get the facility to take loan against it. Loan is available against the amount deposited in PPF account. Which is cheaper than an unsecured loan. The interest rate on PPF loan is only 1 percent higher than the interest rate on PPF account. That is, for the loan taken on PPF account, Rs. EMI will have to be paid at the rate of 8.1 percent.