PPF calculator: Public Provident Fund or PPF account is a tax saving-cum funding instrument which is totally risk-free. It is without doubt one of the central government-backed small saving schemes that give larger yield in long-term. According to tax and funding specialists, present PPF rate of interest of seven.1 per cent remains to be thought-about sufficient to beat the rise in inflation through the funding interval. They mentioned that PPF account matures in 15 years however it may be prolonged within the block of 5 years for infinite variety of occasions. So, for individuals who need to save for his or her retirement corpus, PPF account can be utilized as a long-term risk-free funding possibility. If an individual invests in PPF for long-term, she or he will get advantage of compounding of the curiosity through the tenor of funding.
Speaking on the PPF account options SEBI registered tax and funding knowledgeable Jitendra Solanki mentioned, “PPF account can be used for retirement fund accumulation but for that one will have to submit application in the bank or post office (wherever the PPF account is) for extending the PPF account for next five years. The PPF account holder will have to submit the application in the given format during the 15th year of the PPPF account opening. One can keep on extending it in five years block for infinite number of times. So, if a person opens a PPF account by the age of 30, it can easily continue investing in it for 30 years by using the 5 year extension feature of the PPF account.”
On how PPF account can assist a n investor with low threat urge for food to create retirement corpus Kartik Jhaveri, Director — Wealth Management at Transcend Consultants mentioned, “If a person ha low risk appetite then he or she will have to start saving as early as possible may be at the age of 30. If he chooses a PPF account and invests ₹9,000 per month, then after the maturity of 15 years, the PPF balance will be ₹29,29,111.”
View Full PictureSource: PPF Calculator Groww
However, if the PPF account holder makes use of extension profit and avails compounding profit for subsequent 15 years, then she or he will be capable of develop ₹1,11,24,656 or ₹1.11 crore.
View Full PictureSource: PPF calculator Groww
So, the above PPF calculation is sufficient to perceive how PPF account is beneficial in creating retirement corpus with risk-free funding.
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