Would you like to become a crorepati? How to do it, below! The generation of a retirement fund is one of the most important financial objectives for the upper middle class. The Public Provident Fund (PPF) is a great option if you want a retirement fund of Rs 1 crore by setting aside a portion of your monthly salary. Not only is the PPF scheme a great way to build wealth, but it is also a safe way to invest your money.
We’re talking about the public provident fund for the post office. You will receive an annual interest rate of 7.1% through the post office PPF plan. Additionally, this plan provides investors with the benefit of compound interest. This plan has a 15-year maturity period that can be extended by another 10 years. Investors will also receive tax breaks as a result of this scheme.
You get long-term growth with the post office PPF’s compound interest feature. You will have to spend Rs 1.5 lakh annually to become a crorepati. This amounts to 12500 rupees per month. If you break it down into daily amounts, you’ll need to put in Rs 417.
After 15 years, a person who invests Rs 12500 per month will have invested Rs 22.50 lakh. A person will receive Rs 18.18 lakh in interest if we add up the interest at 7.1 percent.
This indicates that after 15 years, you will have Rs 41 lakh. You can invest this money and continue to add Rs 1.5 lakh annually for the next ten years. Then you’ll have invested Rs 66 lakh. After investing for 25 years, you could become a crorepati if you add up the interest.
The fact that PPF guarantees your returns is its greatest benefit. Additionally, it has tax advantages.
Any post office can be used to open this PPF account. However, a joint account cannot be opened. A post office PPF account can only be opened by Indian citizens. This account is not open to NRIs.
