Becoming a crorepati is the dream of everyone. But for many, this remains a dream forever. But it need not be so. All it takes is focus, determination and dedication that an investor has toward achieving this dream. And you do not really have to take risks that would endanger your money. You do not need to invest a lumpsum amount either. No, you can become a crorepati on the strength of a perfectly safe and sound investment instrument. What we are referring to is the Public Provident Fund (PPF). This is the common man’s wealth generator and everyone should have one as early in life as possible to really become wealthy.
PPF interest rate
Notably, PPF interest rate is quite high currently. It has been set by the government at 7.1%. This compares very well with bank fixed deposits. The best part about PPF is not just that it turns your contributions into a massive amount, it is also tax free. There is no money to be paid to the Income-Tax department, you can keep it all! Now, how many other investment instruments/schemes can make that boast? And even when a taxpayer opts for the new tax regime, he should always keep making his PPF contributions. So, for all those people asking, “crorepati kaise bane”, here is the way forward.
Crorepati kaise bane
Now, how does a PPF interest rate of 7.1% actually make a person a crorepati? Let us assume there is a you investor who starts his PPF journey at 25. His PPF contribution is Rs 150000 every year. Do note that you cannot invest more than this amount in a fiscal.
Now, we insert these numbers in a PPF calculator and what it shows is that a contribution of Rs 1.5 lakh every year for 25 consequent years will generate a magnificent sum of Rs 1,03,08,014.19! Do remember that PPF account has a lock-in period of 15 years. After this period, it reaches maturity, however, the investor must extend this twice in a batch of 5 years each.
Yes, our investor became a crorepati on the strength of PPF alone at the age of 50 only!
Double Your Money through PPF
In case the investor wants to see his money grow even more, he can keep on extending his PPF account. If he extends it by another 10 years, he will get the amazing amount of Rs 2,26,97,857.25. Yes, the money will double in these 10 years!
Note: The sums mentioned here are estimates and the actual amount will be mentioned in the investor’s PPF passbook.
PPF interest rate is 7.1% and it can make your Rs 1.5 lakh yearly investment turn you into a crorepati, according to the PPF calculator. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
