The Public Provident Fund (PPF) is a government-backed savings scheme that offers a secure, tax-free return of 7.1% per annum, that gets compounded annually.
Just by contributing up to ₹1.5 lakh annually, you can eligible to get tax deductions under Section 80C of the Income Tax Act.
With a compulsory 15-year lock-in period, this investment instrument allows your money to grow through the power of compounding.
For example, investing ₹10,000 monthly over 15 years results in a total investment of ₹18 lakh at the end of 15 years.
With compound interest rate at 7.1%, this can give you a maturity yield amount of over ₹31 lakh, effectively doubling your investment.
In order to maximize returns, consider contributing before the 5th of each month and extend your investment beyond 15 years in 5-year blocks.
Checkout this detailed guide – PPF Calculator: How Public Provident Fund can double your investment
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