PPF : In today’s world, the stock market experiences a lot of ups and downs, which increases concerns for investors, especially for small and new investors. People generally prefer investment options that are low-risk and offer stable returns. If you’re looking for a safe investment option, then Public Provident Fund (PPF) could be a great choice for you.
What is PPF and Why is it a Good Investment?
PPF is a government-backed savings scheme, run by the Government of India. The biggest advantage of this scheme is that it is 100% safe and provides guaranteed returns. Currently, PPF offers an annual interest rate of 7.1%, which is compounded annually. This means that your money will grow year after year.
You can open a PPF account in any major bank or post office and start investing easily.
Key Features of PPF
There are a few key features of PPF that make it a popular choice:
- You need to invest at least ₹500 annually.
- The maximum amount you can invest per year is ₹1.5 lakh.
- You can choose to invest in a lump sum or in installments (monthly, quarterly, or annually).
- If you invest ₹1 lakh per year, after 15 years, you could have around ₹27 lakh or more. This amount includes both your principal investment and the interest earned.
PPF’s Tenure and Maturity
PPF has a maturity period of 15 years. If you invest ₹1 lakh every year, after 15 years, you will get a total of ₹27,12,139. This amount includes your ₹15 lakh investment and approximately ₹12.12 lakh as interest.
Who Can Invest in PPF?
Any Indian citizen can open a PPF account. You can also open a PPF account in the name of your minor child. However, keep in mind that only one PPF account can be opened per person.
Why PPF is a Great Option?
The biggest advantage of PPF is that it’s not only safe, but it also offers guaranteed returns. The interest rate is good, and your investment grows over time. Also, since the money is backed by the government, it’s a very secure option.
If you are looking for an investment that keeps your savings safe while offering good returns, then PPF is the right choice for you. This scheme provides not only good returns but also secures your future.
Conclusion
If you want to stay away from market fluctuations and prefer a safe and guaranteed return, PPF is a great option. Its interest rate and long maturity period make it an attractive choice for investors. Whether you’re a small or large investor, investing in PPF can help secure your financial future.
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