Money

How much you need to deposit per month to become a crorepati

PPF calculator: Public Provident Fund (PPF) is without doubt one of the excessive yielding earnings tax saver choice, which is 100 per cent risk-free. Currently, PPF curiosity rate is 7.1 per cent nevertheless it’s introduced on quarterly foundation by the Government of India (GoI). So, the PPF curiosity rate could change in future however for many who have low threat urge for food, PPF is without doubt one of the most favoured assured assure return funding software. According to tax and funding specialists, if invested in a sensible method, one can become a crorepati by selecting month-to-month funding mode and availing the PPF account extension facility after the maturity interval of 15 years.

PPF account deposit guidelines

Speaking on the PPF funding in month-to-month SIP format Amit Gupta, MD at SAG Infotech stated, “As per the PPF account rules, one can do a maximum of 12 deposits in one’s PPF account. So, if an investor, who has low risk appetite and don’t have a huge lump sum amount for investment, he or she can choose the monthly investment mode like mutual funds monthly SIP style. But, the investor is advised to invest in one’s PPF account by 5th of every month so that the PPF account holder can get PPF interest of that month as well.”

PPF account extension rule

Advising buyers with low threat urge for food to reap the benefits of PPF account extension rule; Kartik Jhaveri, Director — Wealth Management at Transcend Consultants stated, “PPF account has maturity period of 15 years, but one can extend one’s PPF account by submitting PPF extension form in the 15th years of account opening, choosing interest with investment option. One can extend one’s PPF account for infinite number of times but in teh block of 5 years. So, if someone wants to go long in PPF, they need to keep extending their PPF account in the maturity year.”

PPF calculator

Assuming an investor invests 9,000 per month by fifth of each month, the investor would find a way to make investments 1,08,000 per annum in a single’s PPF account. Keeping common PPF curiosity rate at present 7.1 per cent, one can go on investing in a single’s PPF account for round 30 years. If a PPF account holder invests 9,000 per month for 30 years assuming 7.1 per cent common annual PPF return, the PPF calculator says that one’s PPF maturity quantity shall be 1,11,24,656.

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Source: Groww PPF calculator

Out of this 1,11,24,656 or 1.11 crore PPF maturity quantity, the online funding accomplished by the investor all through the funding interval shall be 32,40,000 or 32.40 lakh whereas the online PPF return earned by the PPF account holder on this interval shall be 78,84,656.

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