PPF investment benefits: There are dozens of schemes to save tax and invest, but Public Provident Fund is still considered the best option. Despite the low interest rate, PPF has many benefits.
If you deposit money in this scheme, then investment is also happening and tax is also being saved. It can be availed by both Employed and Self Employed people. The government guarantees the security in this savings scheme and the returns are also guaranteed. At present, interest of 7.1 percent is available on PPF.
Equity mutual fund at number one-
Recently a Financial Freedom Survey came. Accordingly, equity mutual funds are the first choice for retirement. This is followed by the Employee Provident Fund and then the Public Provident Fund. PPF gives very good returns in the long term. If you are also planning for your retirement, then start depositing money in this scheme from today, then the retirement fund will be huge.
Maturity in 15 years-
The maturity of PPF is 15 years. Even after that, it can be extended in an interval of 5-5 years. Let’s say you are 35 years old. You have decided to invest in PPF for retirement. For the coming tomorrow, you deposit Rs 100 on a daily basis, which is a very simple amount. In such a situation, when you are 60 years old, you will get a total of 25 lakh rupees which will be completely tax free.
25 lakh will be available in 25 years-
If you want to extend this scheme for 25 years, then in the end you will get 25 lakh 8 thousand 284 rupees. During this, a total of Rs 912500 will be deposited from your side and a total of Rs 1595784 will be received as interest. The most important thing is that this amount will be completely tax free.
Tax benefits are available at every level-
Public Provident Fund comes under EEE category. By investing in it, you get the benefit of deduction under section 80C. The interest income on maturity and the maturity amount is completely tax free. Talking about other schemes, returns are definitely higher in mutual funds, but up to 20 percent long term capital gains tax is levied.
