Crorepati Calculator: Your Public Provident Fund (PF) account can make you rich in long-term! Follow this expert's tips

Crorepati Calculator: The Public Provident Fund (PPF) account is one of the most preferred retirement-oriented investments among the earning individuals. This is one of the central government backed small saving schemes that gives assured returns. Currently, the PPF interest rate is 7.1 per cent, which is enough to beat inflation over the long-term. According to tax and investment experts, one can accumulate wealth for one's retirement fund through PPF which is able to beat inflation rate of some 6 per cent over the long-term.

Speaking on how PPF is able to beat average inflation in the long-term Jitendra Solanki, a SEBI registered tax and investment expert said, "Average inflation in the long-term is considered 6 per cent and PPF interest rate is 7.1 per cent. So, if an investor has low risk appetite, then PPF is one of those limited tools that can help the investor beat the vagaries of inflation and grow a retirement fund that will be able to meet the post-retirement financial needs of the investor."

On how one can maximise PPF account benefits, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "One can extend one's PPF account in a block of five years by submitting Form 16-H during the PPF account maturity year. That means, this form must be submitted in the 15th year in order to extend PPF account for another five years. The same can be done in the 20th, 25th year too." Jhaveri said that investing in PPF for 30 years is possible because generally, investors become vigilant enough about investment at the age of around 30 years.

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Assuming PPF account is opened now and the investor goes on investing Rs 1.5 lakh for the next 30 years then, keeping PPF interest rate at 7.1 per cent, it would be possible to accumulate Rs 1,54,50,911, shows PPF calculator.

Source: PFF Calculator Courtesy Groww

In this period of 30 years, one would be investing Rs 45 lakh and the PPF interest getting credit into the PPF account will be Rs 1,09,50,911. So, in short, one can become crorepati by investing in PPF.