PPF Investment: A Short Explanation on How To Make ₹1 Cr

Public Provident Fund or PPF is a Government backed small savings scheme which investors register for to secure their post-retirement wealth. By making small amounts of regular deposits an individual can generate a huge corpus of funds in his or her PPF account which will be accumulated with invested amounts as well as interest. So, an individual can open a PPF account with a minimum amount of ₹100 and will have to maintain regular minimum deposits of ₹500 per year.

Furthermore, the PPF scheme falls under EEE or Exempt Exempt Exempt category so that the investors can avail of tax benefits of up to ₹1.5 lacks Under Section 80C of the Income Tax.

PPF Investment

How to Get ₹1 Cr Out of Your PPF Scheme?

Currently, PPF offers 7.1% on the deposits made, which are changed on a quarterly basis by the Centre. So, if someone has patience, persistence and guts then making ₹1 Cr at the time of maturity with PPF is possible.

“The PPF account has a 15-year maturity limit, but Jitendra Solanki, a tax and investment specialist registered with SEBI, informed the Hindustan Times’ sister website Livemint that the account can be extended in blocks of five years indefinitely. That implies that a shareholder may keep using the PPF option without taking a cash withdrawal. The depositor has the choice of extending the PPF account with an investment or without one for the following five years,” mentioned.

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Several experts also suggest extending a PPF account period with an investing option.

“If a person with income establishes a PPF account at the age of 30 and, following the required 15-year locking period, increases their investment by 15 years three more times, they will have invested for a total of 30 years. Let’s assume that a PPF account receives 1.5 lacks in annual investments. If the interest rate stays at 7.10% per year for the full 30 years, the final maturity amount will be 1.54 crore, “ mentioned DNA India.

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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