Investments pay off in a much better fashion if kept for the long-term, especially if you want to enjoy your retirement just chilling around at home or vacation without any stress for money. For retirement, government's Public Provident Fund (PPF) scheme is the best. The benefits of PPF would be guaranteed-return, tax exemptions, higher interest rates and no risk. Such investments are always eyed by many investors. But interestingly, while PPF does to cater the retirement needs of account holders , however, if looked closely it is also a better scheme for young citizens who have achieved 18 years of age, which is also the minimum requirement for the scheme. 

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Mostly at the age of 18, youth are studying in college which also indicates that their investment amount will be far lesser than the working groups. The amazing fact about PPF apart from above-mentioned ones, is that it is available easily and can be opted by anyone above 18 years of age who receives just a little pocket money. In PPF, one can invest as little as Rs 42 per month. Now assuming, a person generally starts to begin working from 21-22 years of age completely, before that he or she can use their pocket money for instance Rs 100 or Rs 150 or Rs 200. Remember, you can always increase your investment value ahead while receiving more income. But even if you do not wish to increase your monthly PPF contribution, you can still ear lakhs on retirement. 

Here’s how!

At present, PPF offers 8% interest rate to investors, which is still attractive compared to fixed deposits. 

Example 1: If you begin PPF investment from 18 years of age, by investing Rs 100 per month at an 8% interest rate but opt for 50 years tenure - then your gains will be Rs 7,43,606. 

(Image source: ClearTax Calculator)

Example 2 - If investment is increased by Rs 50 to Rs 150 at the same age with similar tenure and interest rate, then your gains will be over Rs 11.15 lakh.

(Image source: ClearTax Calculator)

Example 3 - If decided to invest Rs 200 at same age with same tenure and interest rate, you will add then over Rs 14.87 lakh in your kitty. 

(Image source: ClearTax Calculator)

Not just youths having pocket, this investment is best suited for those who do not have hefty earnings.

Apart from affordable and attractive gains, PPF gains are tax-free. Firstly, any deposits made in PPF can claim tax-exemption of Rs 1.5 lakh under section 80C of the Income Tax Act. If the PPF account continued till maturity period, then both deposits and interest will be tax free during withdrawal. You can begin a PPF account at any nearby bank notified by government. Maximum investment in PPF Rs 1.5 lakh with minimum being Rs 42. Premature payment is allowed only after the account or the account of the minor account holder of whom he/she is the guardian has completed five financial years.

According to HDFC Bank webesite, a PPF account matures in 15 years, and you can extend it in blocks of 5 years each. You must extend the tenure within one year of maturity. There are no limit on tenure extension.

You can decide your own investment amount for PPF account along with tenure. The higher the contribution, the higher will be your gains. Also note, PPF has the potential to make an investor a crorepati as well!