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Post Office Investments: If you want to raise a good fund in the long term, then you can consider this scheme of the post office. You can create a fund of up to 1 crore at the end of 25 years by opting for the Public Provident Fund (PPF) of the post office. The maximum annual limit in PPF that can be deposited is Rs. 1.50 lakh. That means you will have to invest Rs. 12500 every month.
Interest Rates on PPF
At present, the interest rate on PPF is 7.1 percent. Which is completely tax free. Since it is included in the EEE category, the amount deposited, the interest earned on it and the total amount received at the time of maturity are tax free. Its maturity period is 15 years. Then you can extend it in blocks of 5-5 years.
This is how you can become a millionaire
If you deposit Rs 1.5 lakh annually in the PPF scheme and continue it for 25 years continuously. Then you will become a millionaire in 25 years. Suppose, according to the PPF calculator, you invest Rs 37,50,000 in 25 years. At the rate of 7.1 percent interest, you will get Rs 65,58,015 interest. Thus, after 25 years, including your investment and the interest earned on it, you will have a total of Rs. 1,03,08,015. If the investment capacity is low, then this period of becoming a millionaire will also increase.
Investing 20% of your income is a must
In today's era of inflation, everyone should allocate 20 percent of their income for investment. Because, the inflation rate is going to increase continuously. Therefore, it is necessary to invest at least this much for a financially secure future. 20 percent of Rs 65,000 i.e. Rs 13,000 and you have to save only Rs 12,500 every month. In such a situation, you can easily make this investment and add a fund of Rs 1 crore by your retirement age. Since this is a scheme with guaranteed returns, there is no risk of losing your money.
