Everyone dreams of a secure and stable future. To achieve this, people work hard their entire lives. However, in today’s era of rising inflation, expenses often surpass income, making it challenging to save and invest for the future. Additionally, not everyone feels comfortable investing in the stock market or mutual funds. That’s why today, we’ll share a safe investment option that offers significant returns without any risk.
Invest in PPF
If you want a good return on your money, but you do not want to take any risk, then you should invest in Public Provident Fund (PPF). You get a return of 7.1 per cent in PPF. Here you can invest for five years. Along with this, even after five years, you can extend your investment period for another five years.
How to Invest In PPF
You will have to invest 6 thousand rupees every month for 5 years in Public Provident Fund (PPF). That means you will have to invest 72 thousand rupees per year. After this, when your investment completes 15 years, at the time of maturity you will get a total of 19 lakh 52 thousand 740 rupees.
Return of ₹8.72 Lakh on Investment
If you invest in a Public Provident Fund (PPF) for 15 years, the returns can be quite rewarding. Over five years, you’ll need to invest a total of ₹10.80 lakh, assuming consistent yearly contributions. At the end of the 15-year tenure, your investment will generate a return of ₹8,72,740. This, combined with your principal amount, will result in a total maturity value of ₹19,52,740.
Flexible Investment Options
The PPF scheme is designed to suit every financial situation.
- Minimum Investment: ₹500 per year
- Maximum Investment: ₹1.5 lakh per year
This flexibility ensures that even small investors can participate while allowing larger contributions for those seeking higher returns.
- Tax Benefits Under Section 80C
- PPF offers dual benefits: savings and tax advantages.
Contributions are eligible for deduction under Section 80C of the Income Tax Act.
The scheme follows an Exempt-Exempt-Exempt (EEE) tax structure, meaning your investment, interest, and maturity amount are all tax-free.
Risk-Free and Secure
As a government-backed scheme, PPF provides risk-free returns with compounded interest. It is ideal for those looking for a safe, long-term investment option without exposure to market risks.
Suitable for Long-Term Goals
PPF is an excellent option for achieving long-term financial goals such as:
- Retirement planning
- Children’s education
- Building a financial safety net
With guaranteed returns and tax benefits, PPF is a trusted method to secure your financial future.