Public Provident Fund (PPF) remains one of the
most reliable long-term savings instruments in India. Here’s how
consistent monthly investments can grow your wealth over time.
1️⃣ How Much Should You Invest?
·
Monthly Savings: Rs 12,500·
Tenure: 15 years (standard PPF maturity period)·
PPF Interest Rate: ~7.1% p.a. (current rate as per government)
2️⃣ What Will Your Fund Grow To?
· With
monthly contributions of Rs 12,500, your PPF fund can
accumulate to around Rs 41 lakh after 15 years.· This includes
both principal and compounded interest, making PPF a
powerful tool for long-term wealth creation.
3️⃣ Why PPF Works So Well
·
Compounded Interest: Interest is calculated
quarterly and compounded annually.·
Tax-Free Returns: Contributions, interest earned, and maturity amount are
all tax-free under Section 80C.·
Safe Investment: Backed by the
Government of India, making it virtually risk-free.
4️⃣ Flexibility of PPF
· You can
start with as little as Rs 500 per month.· Partial withdrawals allowed from
7th year onwards.· Loan facility available against PPF balance from
3rd financial year.
5️⃣ Key Tip for Maximum Growth
·
Consistency is key: Set up an
auto-debit for Rs 12,500 monthly.· Avoid
intermittent withdrawals to maximize compounding benefits.· review the
interest rate annually and adjust contributions if necessary.
✅ Takeaway
A
modest monthly investment of Rs 12,500 in a PPF can
turn into Rs 41 lakh over 15 years, making it a
safe, tax-efficient, and high-compounding wealth-building tool.
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