Public Provident Fund: Invest THIS much in PPF to become a crorepati before your retirement
The Indian government is currently offering an annual interest of 7.1% on PPF investments made for 15 years.
New Delhi: If you also want to become a crorepati, then you may need to start investing your money in the right investment policies. For instance, you can start investing in state-backed schemes such as the Public Provident Fund (PPF) every month to become a crorepati after a certain age.
However, investing in schemes like PPF requires a lot of patience, as it takes years for your money to grow sequentially, and for you to witness the power of compounding. Investors as young as 20 can start investing in the PPF to become a crorepati before their retirement.
Case number 1: Start investing in PPF at age 30
If you’re 30 years old and plan to start investing in the PPF to get Rs 1 crore before your retirement, then you should invest Rs Rs 12500 per month. Your total investment after 15 years will become Rs 40,68,209, of which Rs 22.5 lakh is the principal and Rs 18,18,209 is the interest.
However, instead of withdrawing the amount, you can keep investing in the scheme so that your investment becomes Rs 66,58,288 after 20 years and Rs 1,03,08,015 after 25 years.
Case number 2: Start investing in PPF at age 25
You can also start investing in PPF a little early to become a crorepati. For instance, you can start investing Rs 10,000 every month in PFF to become a crorepati at the age of 55 or before your retirement.
In this case, your investment will become Rs 32,54,567 after the 15 years tenure. However, if you keep investing in the scheme for 15 more years, then your total investment will become Rs 1,23,60,728 when you turn 55.
Case number 3: Start investing in PPF at age 20
If you starting at the early age of 20, then you need to invest just Rs 7,500 per month in the PPF scheme to become a crorepati by age 55. After the 15 years tenure, your investment in PPF will become Rs 24,40,926.
However, if you keep on investing in the scheme, then your investment in the scheme will turn into Rs 1,36,18,714 when you turn 55.
Things to note about the PPF scheme
