PPF Investment: Indian investors not only look for better earnings but also keep looking for such investment options where their money remains safe and can gradually turn into a strong fund. Especially those people who want to create a big corpus for the future by saving a small amount every month.
It is very important for them to have a secure scheme. If you are also planning to invest in a similar scheme, then Public Provident Fund (PPF) can be an option. This scheme of the government gives assurance of both security and returns. Where investors can create a big corpus by investing small amounts. Let us know about it..
Information about rules and maturity of investment in PPF
Public Provident Fund (PPF) is a government scheme. Whose maturity period is 15 years. During this period, the investor has to deposit at least a fixed amount in the account every year. Annual minimum investment in PPF starts from Rs 500. At the same time, you can invest a maximum amount of up to Rs 1.50 lakh in a year. Investors are getting interest at the rate of 7.1 percent per annum on this scheme.
After completion of maturity of 15 years, if investors wish, they can extend the PPF scheme twice for 5 years each. That means investors can continue investing in this scheme for 25 years. Interest continues to accrue if withdrawal is not made after maturity.
Create a corpus of Rs 13 lakh with an investment of Rs 4000
By investing in PPF scheme you can create a big corpus. Let us understand this with an example. Suppose you start depositing Rs 4,000 every month in the PPF scheme, then your investment in a year will be Rs 48,000.
In this way, if investment is continued for 15 years, the total investment amount will be Rs 7.20 lakh. According to the interest rate available in PPF, you can get around Rs 13.01 lakh on maturity. That means there will be a profit of about Rs 5.81 lakh. Your small investment can become a big corpus.
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