by Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term investment-saving scheme offered by the Government of India. The investment period is 15 years, and investors have the option to extend the ongoing investment for another five years till the completion of 15 years. The minimum investment amount per year is Rs 500, and the maximum investment allowed is Rs 1.5 lakh.
By investing regularly in the PPF scheme, investors can benefit from the power of compounding. This means that your investments will earn interest, which will be reinvested to increase the principal amount, resulting in higher returns over time.
The current interest rate for PPF is 7.1 percent. By investing Rs 500 every month, you would have deposited a total of Rs 6,000 annually in your account. This investment amount would grow over time due to the interest rate and the compounding effect.
Assuming that the PPF interest rate remains at 7.1 percent, after 15 years, your accumulated investment amount would be Rs 1,62,728. By extending the investment for an additional 5.5 years, your returns would increase to Rs 2,66,332 in 20 years and Rs 4,12,321 in 25 years.
In conclusion, the Public Provident Fund (PPF) is a secure and reliable investment option for individuals looking to save for long-term goals. With its investment period of 15 years and the ability to extend for an additional 5.5 years, investors can benefit from the compounding effect and accumulate substantial returns over time. By investing at least Rs 500 every month, you can accumulate a significant corpus and enjoy the security of a government-backed scheme.
