Question Ask by Ankit Singh
Can I make 1 crore by investing in PPF?
PPF investment is one no risk zone. It has a good interest rate and no time risk of any loss. So this is one of the most prominent choices of people who want to invest.
What is PPF? Why it is one of the most favorite choices of investor? PPF stands for Public Provident Fund. It is famous among people because it gives high interest. If you invest in it then it will only benefit you. The people who don’t love to take risk or have poor experience of share market will go for it. So due to the favor of no risk quality it is very famous among those who don’t want to take risk. It doesn’t only provide attractive interest rate but also tax exemption. The tax is free for both investment amount and interest as well. PPF account can be extended for many a time in block of 5 years. This facility also gives it more attraction.
The interest policy may differ from time to time and in different fiscal year. In recent days the government has reduced the basis point by 80 points. The interest rate came down to 7.1% from 7.9% which is a set-back for the investors. But now the question arises that is it possible to earn 1crore from the PPF investment. The answer is yes. Definitely yes, but some rules must be followed. If we calculate from the today’s scenario then you have continue Rs. 1.5 lakhs per year for 25 years. If you will continue doing this then will make you a crorepati at the time of retirement (may be or may not).
But, is the data is fixed? The answer is no. The data is not fixed even no one can determine the exact time for this. The interest rate and basis points are fixed by the government. This rate may vary from year to year. Sometime it may get hike. Maximum time it seen there is hike in this data but due to the pandemic it got hardly affected. The economy of whole world has shattered. Then in this time government has to reduce and cut down the basis point.
The cut down the basis point is not only in the PPF case. Many other schemes which are provided by the government have a cut in its interest rate. In coming future years it may get some hike. If it happens so than there is a will change will be observed in the calculated data. So it is quite impossible to predict the exact time. But the answer is definitely yes. You can make Rs 1 crore from the PPF investment. It is a hope that economy will again come on track and will give you a hike in this side.
Hope this was an interesting point for you. You will be able to know about the query.