Public Provident Fund ie 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, i.e. Rs 12,500 per month.
If you want to become a millionaire, then you have to know how much you will have to invest every month and for how long.
PPF Crorepati: In the 13th season of Kaun Banega Crorepati (KBC), the blind Himani Bundela created a record by winning one crore rupees. If you have restraint then no one can stop you from being successful, even if it is the challenge of becoming a millionaire. But knowing in KBC it is not in everyone’s luck to become a millionaire, but it also does not mean that you cannot become a millionaire.
You can become a millionaire for sure through KBC’s right PPF. For this too, you just have to believe in yourself like Himani Bundela and keep investing with restraint. So don’t just think, start investing from today to become a millionaire. You don’t have to invest much, only a few rupees every month in Public Provident Fund. If you keep investing in the way mentioned, you will become a millionaire even before retirement.
PPF is long term investment
Public Provident Fund ie 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, i.e. Rs 12,500 per month. If you want to become a millionaire, then you have to know how much you will have to invest every month and for how long.
7.1% interest is available on PPF
At present, the government gives an annual interest of 7.1% on the PPF account. Investment in this is made for 15 years. Accordingly, the total value of investment of Rs 12500 for the month will become Rs 40,68,209 after 15 years. The total investment in this is Rs 22.5 lakh and interest is Rs 18,18,209.
In this way a fund of one crore rupees will be deposited
Case no-1
Suppose you are 30 years old and you have started investing in PPF.
After depositing Rs 12500 every month in PPF for 15 years, you will have Rs 40,68,209
Now this money does not have to be withdrawn, you keep on advancing the PPF for a period of 5-5 years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 – Rs 66,58,288
When it is 20 years, then extend the investment for the next 5 years, that is, after 25 years the amount will be – Rs 1,03,08,015
You have become a millionaire. That is, if you invest Rs 12500 every month in PPF at the age of 30, then after 25 years, that is, at the age of 55, you will have become a millionaire. The maturity of PPF account is 15 years. If this account is to be extended for 15 years, then this account can be extended for the next five years.
Case no-2
If you want to invest a little less amount 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 putting Rs 10,000 every month in PPF account at the age of 25
By 7.1 percent, after 15 years you will have total value – Rs 32,54,567
Now extend it again for 5 years, then after 20 years the total value will be – Rs 53,26,631
Extend it again for 5 years, after 25 years the total value will be – Rs 82,46,412
Extend it again for 5 years, i.e. 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
Even if you deposit only Rs 7500 a month in PPF instead of Rs 10,000, you will become a millionaire by the age of 55, but you have to start investing at the age of 20.
If you keep depositing Rs 7500 in PPF for 15 years at 7.1% interest, then the total value will be – Rs 24,40,926
After 5 years, that is, after 20 years this amount will be – Rs 39,94,973
After 5 years further, that is, after 25 years, this amount will be – Rs 61,84,809
After 5 years, this amount will increase after 30 years – Rs 92,70,546
After continuing the investment for 5 more years, after 35 years the amount will be Rs 1,36,18,714
That is, when you are 55 years old, you will have an amount of more than Rs. Remember, the trick to becoming a millionaire is to take advantage of the compounding of PPF, start investing early and keep investing with patience.
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