PPF Crorepati: You would have thought that I had one crore rupees. So just think do not start investing today to become a crrepati. You do not have to invest much in it, only a few rupees every month in the Public Provident Fund.
New Delhi: PPF Crorepati: You would have thought that I had one crore rupees. So just think do not start investing today to become a crrepati. You do not have to invest much in it, only a few rupees every month in the Public Provident Fund. If you keep investing in the manner described, then you will already become a millionaire before retirement.
PPF is a long-term investment
Public Provident Fund i.e. PPF is considered a better option for long term investment, in which you get good returns. In PPF, you can invest up to Rs 1.5 lakh in a year, that is, Rs 12,500 a month. If you want to become a millionaire, then you have to know how much you will have to invest every month and till when.
7.1% interest on PPF
At present, the government pays an annual interest of 7.1% on the PPF account. Investment in this is done for 15 years. According to this, the total value of the investment of Rs 12500 a month will be Rs 40,68,209 after 15 years. The total investment in this is Rs 22.5 lakhs and interest is Rs 18,18,209.
Funds of one crore rupees will be deposited in this way
Case number-1
Suppose you are 30 years old and have started investing in PPF.
After depositing Rs 12500 in PPF for 15 years every month, you will have Rs 40,68,209
Now this money is not withdrawn, you should keep moving the PPF in a period of 5-5 years.
That is, after 15 years, keep investing for 5 more years , that is, after 20 years this amount will be – 66,58,288 rupees
When it is 20 years, then increase the investment for the next 5 years, that is, after 25 years, the amount will be – Rs 1,03,08,015.
Here you become a millionaire. That is, if you invest 12,500 rupees every month in PPF at the age of 30, then after 25 years, you must have become a millionaire at the age of 55 years. Explain that the maturity of PPF account is 15 years. If the matter is to extend this account for 15 years, then according to five-five years this account can be extended for further years.
Case number-2
If you want to invest a little less money in PPF instead of Rs. 12500 but want to become a millionaire at the age of 55, then you have to start a little earlier
Suppose you started depositing Rs 10,000 every month in PPF account at the age of 25
According to 7.1 percent, after 15 years you will have total value – Rs 32,54,567.
Now forward it again for 5 years, then after 20 years the total value will be Rs 53,26,631.
Proceed it again for 5 years, after 25 years the total value will be – 82,46,412 rupees
Proceed again for 5 years, that is, after 30 years, the total value will be Rs. 1,23,60,728
That is, you will become a millionaire at the age of 55.
Case number 3
If you deposit only 7500 rupees a month in PPF instead of 10,000 rupees, you will still become a millionaire by the age of 55, but you will have to start investing at the age of 20.
If you deposit 7500 rupees in PPF at 7.1% interest for 15 years, then the total value will be – 24,40,926 rupees.
After 5 years, this amount will be increased after 20 years – Rs 39,94,973
After 5 years further, that is, after 25 years, this amount will be Rs 61,84,809.
After further 5 years, after 30 years, this amount will increase – Rs 92,70,546
After 5 more years of investment, the amount will be reduced after 35 years – Rs 1,36,18,714
That is, when you are 55 years old, you will have an amount of more than one and a quarter crore rupees. Remember that the trick to becoming a millionaire is that you take advantage of PPF compounding, start investing early and keep investing with patience.
