Do you want to be a crorepati? Here's how to do it! One of the biggest financial goals for the upper middle-class section is to generate the retirement fund. If you want a retirement corpus of Rs 1 crore by setting aside a portion of your monthly salary, the Public Provident Fund (PPF) is a great option. PPF scheme is not only a great wealth generator, it is also a safe investment of your money.
We are talking about the post office public provident fund. The post office PPF scheme will give you a yearly interest of 7.1 percent. This scheme also gives investors the benefit of compound interest. The maturity period for this scheme is 15 years which can be extended to 10 more years. This scheme also gets investors the benefit of tax breaks.
The post office PPF with the compound interest facility gives you sustained growth. To become a crorepati, you will have to spend Rs 1.5 lakh per annum. This translates into Rs 12500 per month. If you break down it to a daily figure, you will have to invest Rs 417 per day.
If a person invests Rs 12500 per month, after 15 years, he will have invested Rs 22.50 lakh. If we add up interest at the rate of 7.1 percent, a person will get an interest of Rs 18.18 lakh.
This means you will have Rs 41 lakh after 15 years. You can keep this money invested and keep adding Rs 1.5 lakh per year for the next 10 years. Then your invested amount will be Rs 66 lakh. If you add up interest, after 25 years of investment, you could become a crorepati.
The best thing about PPF is that it gives you guaranteed returns. It also provides tax benefits.
This PPF account can be opened through any post office branch. However, you can't open a joint account. Only Indian citizens can open a post office PPF account. NRIs can't open this account.
