Public Provident Fund is a good choice if you are looking for the best financial investment for a secure future. By investing Rs 100 daily through this scheme, you can get secure income for your retirement life. Investment Plan: Invest 100 rupees and get 25 lakh rupees.
Most of the people are searching for the best platform for the best financial investment for a financially safe and secure future. Following the thinking trend of people there are many schemes to invest. Among these, Public Provident Fund (PPF) is still considered to be the best option. Despite the low interest rate, PPF has many advantages. Investment Plan: Invest 100 rupees and get 25 lakh rupees.
If money is deposited in this scheme, investment will also be made and tax will also be saved. Both employee and self-employed can avail this benefit. In this savings scheme the security is guaranteed by the government and the income is also guaranteed.
Interest income on maturity and maturity amount is completely tax free here. Among other schemes, returns are definitely higher in mutual funds, but long-term capital gains tax of 20 percent is levied. So let’s look at each aspect of this plan from an investment angle.
Equity Mutual Fund
According to the latest Financial Freedom Survey results, equity mutual funds are the number one choice for retirement life. This is followed by Employee Provident Fund and then Public Provident Fund. PPF gives good returns in long term. You too can start depositing money in this scheme if you are planning for your retirement.
Maturity period and investment calculations
The maturity period of PPF is 15 years. Even after that it can be extended to 5+5 years. A daily deposit of Rs 100 will accumulate Rs 36,500 in a year. If you make this investment for 15 years and the current rate of interest is fixed at 7.1%, you will get a total of Rs 9.89 lakh. 5,47,500 in your deposit in 15 years.
Now you can extend it again for 5 years before expiry. Then it can be extended again for 5 years i.e. 25 years. 25 lakhs 8 thousand 284 rupees will be received in 25 years.