How to be a Crorepati: PPF can also become a millionaire, just have to adopt this formula

 How to be a Crorepati: PPF can also become a millionaire, just have to adopt this formula

New Delhi: PPF Investment: It is very important to earn money in life, but the thing is when your money is earned for you. Making money and saving money are two different things. It is not necessary that the one who is earning a lot of money today, has a lot of money in the future as well. Savings have to be done for this. In today's date, many people may find it difficult to become a millionaire, but it should not be so difficult, only a firm strategy of investment.

Ways to become a millionaire

There are many ways to become a millionaire. By making regular investments through SIP, you can become a millionaire till retirement. One can become a millionaire by investing in the stock market. But there is a lot of risk in this. There is another way also, you can retire as a millionaire through PPF ie Public Provident Fund. This is a very safe and guaranteed return scheme.

PPF investment is attractive

PPF is a good tool for long-term investment. Saving and investing through this is very easy. Until some time ago, it used to get interest over 8 percent. But at present, interest of 7.1% is available. Investment of PPF comes in the EEE category (Exempt-Exempt-Exempt). That is, your investment and the interest and maturity amount received on it are all tax free.

PPF continues to run even after maturity

Investment of up to Rs 1.5 lakh in a PPF account is tax free. Meaning that a person can avail income tax exemption on investments up to Rs 1.5 lakh in PPF account. The maturity period of PPF is 15 years, but the account can be extended in a block of 5 years. However there is no limit to the extension of PF account. Every time the account holder has to submit Form-H for extension once in 5 years. For example, if the account holder wants to invest for 25 years, he will have to submit Form-H twice after 15 and 20 years.

This is the formula to become a millionaire from PPF.

1. How will you become a millionaire from PPF to retirement, for this, it is most important that you start investing in PPF at least from the age of 25 to 30 years.

2. Suppose you will get returns at an average rate of 7.1% for a maturity period of 15 years.

3. Every year, if you invest 1.5 lakh rupees in PPF, then you have to put 12,500 rupees in PPF per month.

4. In this case, the maturity amount will be Rs 40,68,210 after 15 years at an average interest rate of 7.1%, while the total invested amount will be Rs 22.5 lakh.

5. In PPF, you get the facility of extension even after maturity, then you can extend your account further

6. On completion of 15 years, submit the Form-H and extend the maturity period 2 times for 5-5 years.

7. In this case, you will continue to invest 1.5 lakh rupees every year for 25 years.

8. If the interest rate remains constant at 7.1% for the entire period, the maturity amount will be Rs 1,02,40,260, while the total invested amount will be Rs 55.68 lakh

9. That is, 46.72 9. Lakh rupees, you earn only by interest. On which no tax has to be paid. Here you become a millionaire after 25 years.

This is a special trick

PPF account holder should invest between 1st and 4th of every month. This will help the account holder to get PPF interest in the same month. Because according to PPF rules, if you invest from the first to the fourth of the month, then you will be considered eligible for PPF interest rate for the same month.