You can become a millionaire by investing in PPF; Here’s how
By the time we do the job, we have the means of earning, but after retirement, people invest from now on how to create a regular income source. If you want to have a bank balance of crores of rupees even after retirement, then investing in Public Provident Fund can be a better option for you. So what is the scheme and how can you invest in it, know the details.
What is Public Provident Fund (PPF)
The Public Provident Fund (PPF) offers interest of up to 7.1 percent. It is considered quite safe from the investment point of view. PPF is a good investment option for long term investment. Its maturity period is 15 years. However it can be carried forward for 5–5 years. For this extension, Form-H has to be submitted. Its returns are completely tax free. Investments up to one and a half lakh rupees are not taxed.
How to become a millionaire by investing in PPF
If a person starts investing in PPF from the age of 25 to 30 years and accumulates Rs 1.5 lakh every year, when he completes 15 years and advances it for 25 years, he deposited a total of 55.68 lakh rupees. If an interest of 7.1% is added on this, the person will get Rs 1,02,40,260 on maturity.