Almost everyone wants to invest. People are always interested in options that offer high returns with low risk. Some take risks by investing in the stock market or mutual funds. Others prefer government schemes to stay on the safer side. One such popular scheme is the Public Provident Fund (PPF). Yes, if you are thinking of long-term investment and want to secure your future, then the Public Provident Fund can be a great option for you.
Why is the Public Provident Fund Popular?
The Public Provident Fund (PPF) is a government-backed savings scheme offering an interest rate of 7.1% per annum. The best part is that the scheme is completely tax-free. You can invest a minimum of ₹500 every year, with a maximum annual investment of ₹1.5 lakh. The PPF account is initially opened for 15 years, but you can extend it for another 10 years if you wish.
Big Profits After 25 Years of Investment
Let’s consider this example: If you invest ₹1.5 lakh in PPF every year for 15 years, after 15 years, your total balance will reach ₹40,68,209. If you extend the account for an additional 5 years without adding any more money, the fund will grow to ₹66,58,288. By extending it for another 5 years (total 25 years), your fund will reach ₹1,03,08,015. After 25 years, you won’t be able to add more money, as the maximum tenure of the scheme will end. However, you will continue to earn interest at the rate of 7.1% per year, which will amount to about ₹7,31,869 in annual interest.
Key Benefits of the Public Provident Fund
- Government-Backed Security: Since the PPF is regulated by the government, there is no risk of losing your money. It is a guaranteed scheme.
- Tax-Free Interest and Maturity: Both the interest earned and the maturity amount are completely tax-free, meaning you don’t need to pay any taxes on the returns.
- Long-Term Profits: If you stay patient and invest for the long term, you can earn huge returns.
Is PPF the Best Option for Future Security?
If you are looking for a safe and reliable investment for long-term financial security, the Public Provident Fund could be the perfect choice. It offers great returns while keeping your money safe and secure.
Dailynews24 App :
Read the latest News of Country, Education, Entertainment, Business Updates, Religion, Cricket, Horoscope Here. Read Daily Breaking News in English and Short Video News Covers.
