PPF Investment: The Public Provident Fund (PPF) has been one of the popular investment instruments for investors who want a better and risk-free return on their investment. Investment in PPF comes with tax saving benefits as well, making it more attractive among investors.
Presently, PPF pays an interest rate of 7.1 percent per year. Unlike market-linked investment tools such as mutual funds or stocks, which usually give higher returns than PPF but carry higher risks.
Read More: EPFO Rules: You face 30% tax on PF withdrawals over Rs 50,000 in THIS scenario
PPF is a risk-free investment tool
Backed by the government, PPF provides security and gives additional benefits of tax-free interest and maturity earnings under Section 80C of the Income Tax Act. PPF is particularly appealing to conservative investors seeking long-term growth with guaranteed returns, while those willing to take on more risk may prefer market-linked investments as they offer higher returns.
As an investor, if you are looking for low-risk investments with good returns, PPF can be an excellent option. PPF is open to any Indian citizen and can be invested up to Rs 1.5 lakh per year, with a minimum deposit of Rs 500. The PPF has a tenure of 15 years and offers compound interest.
Read More: Latest PPF interest rate: What is the Public Provident Fund interest rate?
PPF corpus with investment of Rs 2000 per month
Total investment over 15 Years- Rs 3,60,000
Total Investment Annually – Rs 24,000
Earning as interest- Rs 2,90,913
Total amount at Maturity: Rs 6,50,913
The interest rate is calculated at the current rate -7.1%
Read More: PF Withdrawal: 5 Cases Where TDS Is Not Levied On Withdrawal From Employees Provident Fund Scheme
PPF corpus with an investment of Rs 3000 per month
Total investment to be made in 15 Years- Rs 5,40,000
Annual investment – Rs 36,000
Total earning as interest- Rs 4,36,370
Total amount at maturity (principal amount + Interest Earned)- Rs 9,76,370
The interest rate is calculated at the current rate -7.1%
PPF corpus with an investment of Rs 5000 per month
Total investment to be maid in 15 Years- Rs 9,00,000
Total Interest earned- Rs 7,27,284
Total amount on Maturity- Rs 16,27,284
The interest rate is calculated at the current rate -7.1%
