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PPF: Rs 12,500 Per Month Investment Will Give Rs 2.27 CRORE Return In These Many Years


New Delhi: For those seeking a safe haven for their hard-earned money, the Public Provident Fund (PPF) emerges as a favored choice, especially among risk-averse, long-term investors in India. Renowned for its reliability and attractive returns, PPF stands out as a low-risk investment option that has garnered popularity among citizens.

What Makes PPF A Standout Choice?

Public Provident Fund, commonly known as PPF, is a government-backed, high-yielding small savings program designed to secure long-term prosperity, particularly for retirement. (Also Read: Turn Rs 1 Lakh Into Rs 1 Lakh Monthly With This High-Profit Business Idea)

Falling under the exempt-exempt-exempt (EEE) classification, this investment avenue provides a reliable shelter for investors looking to build wealth steadily. (Also Read: Searching For Job? These Startups Are Hiring For Different Roles – Check)

Who Can Invest In PPF?

Guardians acting on behalf of minors or individuals of unsound mind can initiate a PPF account with a modest minimum deposit of Rs 500 and an annual cap of Rs 1.5 lakh. This makes it accessible to a wide range of investors, promoting inclusivity in the financial landscape.

How Does The Math Work?

Consider this: Investing just Rs 12,500 per month or Rs 1.50 lakh annually in a PPF account can yield approximately Rs 2.27 crore at maturity. It’s important to note that PPF accounts come with a 15-year maturity period, extendable in blocks of five years. To continue beyond 20 years, investors need to submit Form 16-H.

The Power Of Consistent Investment:

Extending a PPF account beyond 20 years can lead to substantial wealth creation. For instance, a monthly investment of Rs 12,500 or Rs 1.50 lakh annually can result in a maturity amount of Rs 2,26,97,857, or around Rs 2.27 crore, considering the current PPF interest rate of 7.10 percent.

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