How to Become Crorepati: Start investing early and create a fund of crores in the long term. The reason is clear, there is a tremendous benefit of compounding on investment and a large corpus is prepared even before retirement. There is such a tremendous government scheme.
How to Become Crorepati: Millionaire in 25 years, it sounds impossible to hear. But it is possible and easy too. There is only one hit mantra for investment and earning. Start investing early and build a corpus of crores over a long period of time. The reason is clear, there is a tremendous benefit of compounding on investment and a large corpus is prepared even before retirement. There is such a tremendous government scheme, through which you can create a fund of crores of rupees in the long term. Also understand the special thing, investment in this scheme is completely safe. Every year you will get guaranteed interest on your investment. Along with this, this government scheme will also help you in saving tax. Overall a millionaire making scheme with tax free income and guaranteed returns. The scheme is Public Provident Fund Account.
How to become Crorepati with PPF: Become a millionaire in 25 years
Public Provident Fund (PPF) is a hit scheme for the long term. Investment in PPF can be started in any post office or banks in the country. PPF earns an interest of 7.1% per annum. The benefit of compounding is also available on an annual basis. Interest rates are reviewed every quarter by the government. In such a situation, with the change in interest rates, the maturity amount can also increase or decrease. The maturity of the account is 15 years. After maturity, the investment can be extended twice for 5-5 years. The investment limit is Rs 1.50 per annum. Either put lump sum or every month.
How to become Crorepati: Understand here how to calculate
Investments have to be started at the age of 25. 12,500 rupees have to be deposited in PPF account every month. In 12 months, according to Rs 12500, only Rs 1.50 lakh can be invested. According to the PPF calculator, then in 15 years the total fund will be collected at Rs 40.68 lakh. The total investment in this will be Rs 22.50 lakh and the earning from interest will be Rs 18.18 lakh. Now the trick here is to extend your investment for 5 years after the maturity of 15 years. When this period is over, then increase the investment to 5 years. By doing this, the total investment period will be 25 years and Rs 1 crore 03 lakh 08 thousand 15 will be deposited in the PPF account. The share of investment in this will be Rs 37.50 lakh only. But, the income from interest will be 65 lakh 58 thousand rupees.
How to become Crorepati: Also know the advantage of EEE
Investing in PPF is not just for making money but also for saving money. This is also the biggest advantage of the scheme. Actually, tax exemption is available in PPF under section 80C of the Income Tax Act. Tax exemption can be claimed on investment up to Rs 1.50 lakh. At the same time, the interest earned on investment in PPF and the amount received on maturity are also completely tax free. That’s why PPF Investment is kept in EEE category. Means Exempt, Exempt, Exempt Investment, Interest and Maturity all three are tax free.
