PPF Investment: This is the only instrument which is quite different as compared to other instruments. This is such an instrument, where not only money is safe but also good return on investment is being given.
PPF Investment: There is money but where to invest. There is no one to show you the right direction. There are so many ways to invest, so there is confusion too. In such a situation, which product will give you the most benefit and how? It is important to understand this. Public Provident Fund is the only instrument which is quite different as compared to other instruments. This is such an instrument, where not only money is safe but also good return on investment is being given. PPF is such a means of investment, which makes it different from other small savings schemes. So what are the benefits.. why is this investment product different, let's know…
1. Great interest
There was a time when fixed deposits were considered the best in terms of interest and security. But, now if we talk about returns, then at this time the most benefit is available in the Provident Fund (EPF interest rate), where there is an interest of 8.10 percent. This fund is for private and government employees. A similar product was started for the common public, Public Provident Fund ie PPF. At present, 7.1 percent interest is being given on PPF coming under the Small Savings Scheme. The interest rate is fixed on quarterly basis.
2- Income tax exemption is available
Income tax exemption is also available on investment in PPF investment i.e. Public Provident Fund. Section 80C of the Income Tax Act provides a maximum exemption of up to Rs 1.5 lakh on PPF investment. The most important thing about PPF is that the interest earned in the scheme and the money received on maturity is completely tax free.
3- Guarantee of government security
The PPF is directly regulated by the central government and the government also decides this interest. Therefore, there is a complete guarantee of safety on investment in the scheme. If you are looking for investment with tax exemption and good returns, then investing in PPF is the best. More returns than PPF are available only in Sukanya Samriddhi Yojana and Senior Citizen Scheme. But, not everyone can invest in it.
4. Benefit of compounding interest
Investing in PPF is considered beneficial. Because, the interest received on it changes on a quarterly basis. Meaning if you get less interest in a quarter, then you may get more interest in the next quarter. Along with this, the benefit of compounding interest is also available on interest.
5- The more time you give, the bigger the fund will be ready.
Most people believe in investing for a long period of time. The advantage of this is that your regular investment helps you to build a large corpus. For example, if someone has invested 1 lakh rupees every year in PPF account, then in 15 years your investment will be 15 lakh rupees. 12,12,139 will be earned from interest on this. Meaning, by investing in the scheme, you will have a total deposit of Rs 27 lakh 12 thousand 139.
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