Investing in the market is always risky. However, through long-term investments, you can not only mitigate the risk but can amass a huge sum. PPF (Public Provident Fund) is amongst the safest options if you intend your investments to be risk-free.
Investing in PPF is completely safe and there is a government guarantee to it. There is also a tax exemption given on the PPF investment.
Investments in PPF is not only made by those who fall under the ambit of EPFO, but self-employed people can also invest in the scheme. PPF provides a lump sum or monthly investment facility throughout the year. A maximum of 1.5 lakh can be deposited annually or a maximum of Rs 12500 per month.
Under the PPF scheme, you can deposit a maximum of Rs 12500 per month. This way, you can deposit 1.5 lakh rupees annually in PPF. If you deposit 37.5 lakh rupees in this investment for 25 years, you will get a total of 1.03 crores as returns. Which means you will get 65 lakh 58 thousand 15 rupees on your investment of 37 lakh 50 thousand.
There is also a plan to invest for 15 years in PPF. Under this scheme, you need to deposit 12,500 rupees monthly which means you invest 22 lakh 50 thousand for the entire period. And based on the current rate of interest of 7.1 percent you will get Rs 18 lakh 15,209 for the amount invested. The entire amount put together will come up to be Rs 40,68,209.
Under section 80C, a tax rebate is available for investments of up to Rs 1.5 lakh in PPF. You also get a rebate on both the interest and the maturity amount, unlike recurring deposits where you have to pay tax. There is also the facility of taking a loan on PPF account.