Wanted to invest on something? But cant figure out about where to invest? Then today’s article is for you. If you are looking for a safest option this PPF is best for you. From this, the customer can get 91 thousand rupees per month.
PPF investment
You have to invest in PPF for a long time. The minimum investment tenure is 15 years. Investment in PPF is tax-free and it is very profitable in that regard. Not only that, it has been developed as a debt-based investment fund. Its growth index is not dependent on stock market fluctuations.
At present, the interest rate on PPF has been kept at 7.1 percent. PPF is not far ahead of other financial options in terms of interest rates. However, financial analysts believe that it is one of the best funds due to tax-free and long-term investment opportunities. For those above 60 years of age, there is an opportunity to get big money from PPF.
PPF subscribers get tax exemption in three cases. First, the money invested in the fund is completely tax-free. The customer will get this exemption under Section 80C of Income Tax. Secondly, the marginal interest from PPF is not subject to tax. Thirdly, the government has kept the money received after the expiry of the tenure out of the tax net.
A PPF subscriber can contribute up to a maximum of Rs 1.5 lakh in a year. The interest rate of the fund is reviewed by the Finance Ministry every three months. As a result, PPF interest is likely to increase. It guarantees certain returns. And so a large part of the middle class is inclined to invest in it. Investing at the beginning of the financial year will benefit the customer more. Initially after 15 years, the investor can apply for an unlimited number of extensions, with or without additional contributions. However, in each case, the money will have to be locked in for five years.
If the contribution is extended for 15 years, the customer will get additional interest if the money is kept in the PPF account. In that case, the amount of capital in this fund will increase. On the other hand, the customer will be entitled to receive interest on the deposited money even if the contribution does not increase. That is, a passive increase in the amount of interest will be observed.
If you invest Rs 1.5 lakh a year, then at the end of 15 years, the total investment in PPF will be Rs 22.5 lakh. At an interest rate of 7.1 per cent per annum, the customer will get Rs 18.2 lakh as interest.
To get a total of Rs 1.5 crore from PPF, you have to invest for 30 years. The customer will have to pay Rs 45 lakh within this period. From which he will get an estimated interest of Rs 1.09 crore. The interest amount will be Rs 1.54 crore. This report gives an estimate of how much interest can be received at the rate of 7.1 percent per annum. If the interest rate is increased by the center, the customer will get more money than this. It can get interest up to Rs 11 lakh a year. That is, the customer will get interest of 91 thousand 400 rupees per month.
