How to build Rs 1.54 crore corpus through PPF in 30 years by saving Rs 12,500 per month
Want to secure a retirement fund of Rs 1,54,50,911? Here's a detailed explanation of how you can build this investment through the Public Provident Fund (PPF) scheme. Also know the importance of extending your PPF account and the benefits of consistent contributions. Know how even a modest monthly investment can lead to significant wealth accumulation over time.
PPF Calculator: Becoming a crorepati isn't rocket science. All it takes is a solid strategy of saving and investing, along with a bit of patience, since wealth accumulation is a gradual process. The key question is: where should you invest?
Mutual Fund SIP vs PPF
If you can take some risk, a Mutual Fund SIP might be a good fit. However, if you prefer a safer option, consider the Public Provident Fund (PPF). In a PPF account, you can invest up to Rs 1.5 lakh annually, which currently offers an interest rate of 7.1 per cent.
PPF Calculator: How to grow investment to over Rs 1.5 crores
Here’s how you can potentially grow your investment to over Rs 1.5 crores with this scheme.
PPF Calculator: Scheme extends in blocks of 5 years
While the PPF scheme matures in 15 years, it can be extended indefinitely in blocks of 5 years.
PPF Calculator: How to accumulate Rs 1,54,50,911 by age 60
To reach Rs 1,54,50,911, you will need to invest Rs 1.5 lakh each year—approximately Rs 12,500 monthly.
PPF Calculator: Extend your PPF account 3-times
After the initial 15 years, you’ll need to extend your PPF account three times, bringing the total investment duration to 30 years.
PPF Calculator: Total investment + interest earned
By the end of this period, you will have invested a total of Rs 45,00,000, but you will also earn Rs 1,09,50,911 in interest.
PPF Calculator: Total amount received after 30 years
Therefore, at maturity, your total fund will amount to Rs 1,54,50,911. If you start this investment at 30 and continue until you're 60, you will have a substantial retirement fund.
Important Notes on Account Extension
When extending your PPF account, you must do so while continuing to contribute. To extend, submit an application to the bank or post office where your account is held.
Application must be submitted before maturity date
This application must be submitted one year before the maturity date, and you'll need to fill out a form for the extension.
Don't miss deadline
Ensure that you submit this form at the same branch where your PPF account was opened. If you miss the deadline, you won’t be able to contribute further, so keep this in mind.