Public Provident Fund: What Rs 1.5 lakh a year may give you in 15, 20, 25 years

Public Provident Fund: What Rs 1.5 lakh a year may give you in 15, 20, 25 years

Public Provident Fund (PPF) investment: For those scared of market volatility, PPF comes across as a safe investment option with a bag full of benefits.

 

By investing the maximum limit of Rs 1.5 lakh per annum in PPF, you can accumulate a large lump sum. Although, the maturity period of PPF account is 15 years at present, you can extend the account for a period of five years each on request and continue investing and earning.

The following calculation will give you an idea of how much your investment of Rs 1,50,000 per year would grow into in 15 years, assuming the interest rate remains at 7.9 percent.

Public Provident Fund: Calculation chart at 7.9 percent interest

You can see from the chart above that Rs 1,50,000/year investment in PPF account can grow up to Rs 43,50,547 in 15 years if the interest rate remains at 7.9 per cent. Following the same calculation (as in the chart above), your annual investment of Rs 1.5 lakh in PPF account can grow up to around Rs 70 lakh and Rs 1.1 crore in 20 and 25 years respectively if the interest rate remains unchanged.

Happy Investing

Source:Moneycontrol.com