If you want to become a millionaire (Crorepati Kaise bane?) With small savings, then you can invest in Public Provident Fund i.e. PPF. You can become a millionaire by depositing a small amount every month in PPF.
For this, you should start investing from today so that after retirement you will not have to be tempted for money. If you keep investing in the manner described, then you will already become a millionaire before retirement. So let’s know how much and how much investment will have to be made-
PPF is considered a better option for long-term investment, in which you get good returns. You can invest up to Rs 1.5 lakh in this year, that is, Rs 12,500 every month. Explain that the government pays an annual interest of 7.1% on PPF account. It is invested for 15 years.
Accordingly, the total value of the investment of Rs 12,500 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.
For example, suppose you are 30 years old at the moment and you start investing in PPF from today. If you deposit 12,500 rupees in PPF every month for about 15 years, then you make 40,68,209 rupees. Now if you do not withdraw this money, you keep on advancing PPF within a period of 5-5 years.
That is if you invest 5 years after 15 years, then after 20 years, it will be Rs 66,58,288. If it is 20 years, then you can move forward the investment for the next 5 years, that is, after 25 years, this amount will be Rs 1,03,08,015.
If you deposit 7500 rupees every month in PPF, 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 for 7.1 years at 7.1 percent interest, then the total value will be – 24,40,926 rupees. After 5 years, this amount will be 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 continued investment, after 35 years, the amount will be Rs. 1,36,18,714. That is, when you are 55 years old, then you will have an amount of more than one and a quarter crore rupees.