New Delhi: Public Provident Fund, or PPF, is one of the most popular investment options among all Indian citizens for long-term investors who are wary of risk and want to put their money in risk-free schemes.
The plan offers attractive and dependable returns. An investor can obtain a sizeable amount of abundance through PPF in a couple of years. It is available to both employed and self-employed individuals. On PPF, interest rates of 7.1% are currently available.
Here, both the maturity amount and the interest income on maturity are completely tax-free. Mutual funds offer unquestionably higher returns than other strategies, but investors must pay up to 20% long-term capital gains tax.
The process of determining your PPF account’s interest rates and returns becomes a little more difficult. But rest assured! Continue reading to simplify these difficult calculations.
Calculator for return If you start investing Rs 1,000 per month for 15 years, you will have deposited Rs 1.8 lakh. You will receive Rs 1.45 lakh in interest from the 7.1 percent interest rate. You will receive Rs 3.25 lakh upon maturity.
You will receive Rs 26.32 lakh if you choose to extend your investment for an additional 25 years over the course of five years.
(Disclaimer: This article is intended to provide information. To provide an illustration of a particular kind, the calculator is also primarily based on assumptive figures. The purpose of the article is not to offer any kind of financial advice. Before making an investment in any scheme or policy, subscribers or investors must check with their portfolio managers.)