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Becoming a millionaire is not rocket science. For this you just have to understand the strategy of savings and investment and have some patience in yourself because any such work takes a lot of time. Now the question comes where to invest. If you can take some risk then a scheme like Mutual Fund SIP can be helpful for you. But if you do not like risk then you can opt for PPF i.e. Public Provident Fund. A maximum of Rs 1.5 lakh can be invested annually in PPF. Currently 7.1 percent interest is being given on this scheme. Know here how you can add funds of more than Rs 2 crore through this scheme.
This is how you will add Rs 2,26,97,857 by the age of 60
PPF scheme matures in 15 years, but you will have to get it extended. You can extend PPF any number of times in a block of 5 years. To add Rs 2,26,97,857, you will have to invest Rs 1.5 lakh in PPF every year i.e. deposit Rs 12,500 every month. After this you will have to get it extended 4 times in a block of 5 years. In this way the total tenure of your PPF account will be 35 years.
If you do this, you will invest a total of Rs 52,50,000 in 35 years, but you will get Rs 1,74,47,857 as interest on it. In this case, you will get Rs 2,26,97,857 on maturity. If you start this investment at the age of 25 and continue it for 35 years, then at the age of 60 you will have Rs 2,26,97,857 as retirement fund.
Account Extension with Contribution
Keep in mind that whenever you want to increase PPF, you have to do so along with the contribution. For this you will have to apply in the bank or post office where you have your account. You have to submit this application before completion of 1 year from the date of maturity and fill a form for extension. The form has to be submitted in the same post office/bank branch where the PPF account has been opened. If you fail to submit this form on time, you will not be able to contribute to the account. Therefore, take special care of this matter.