Investment Tips: Learn How Investing Rs. 1000 Per Month Could Fetch You Rs. 12 Lakhs

How to Invest: The risk of loss in this scheme is almost zero, as it is fully protected by the government. Along with this, investors can also avail loan facility when enrolled in this scheme.

Representative Image

Public Provident Fund: Public Provident Fund (PPF) is a great investment option. The risk in investing in PPF is almost zero, as it enjoys full government protection.

Investing in PPF can yield good profits for you.  However, you must choose the investment period carefully. Great returns can be earned by investing long-term in PPF. You can earn more than Rs. 12 lakh by investing just Rs. 1000 per month.

Rate of Interest:

• The central government revises the Interest Rates on PPF accounts every quarter.
• The interest rate is usually 7-8% per annum, which may go slightly up or down depending on the nation's economic situation.
• The interest rate is currently at 7.1%, which is compounded annually. This is more than what many banks give on Fixed Deposits.
• As per the rules, a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh per annum can be deposited in a PPF account every year.

Tenure:

• The maturity period for a PPF account is 15 years. This means that the money can be withdrawn only after a completion of 15 years.
• Also, the PPF account can be extended by 5 years at a time. 

Investment Security:

• The scheme is backed by the government, so investment in it is completely safe.
• It also has sovereign guarantees on the interest earned.

Loan facility:

• Subscribers can avail loans at reasonable interest rates on PPF accounts.
• Investors with active PPF accounts can apply for loans in the third and sixth year of investment tenure.
• It is especially beneficial for those applying for short term loans.

Learn how to invest in this scheme:

• If you deposit Rs. 1000 per month in a PPF account, the investment amount in 15 years will be Rs. 1.80 lakh. It will fetch you an interest of Rs 1.45 lakh. 
  Therefore, a total of Rs. 3.25 lakh would be available on maturity. 
• If you continue to invest Rs. 1000 per month and increase the PPF account by 5 years, your total investment amount will be Rs. 2.40 lakh. 
  This amount will fetch an interest of Rs 2.92 lakh. In total, you would get Rs. 5.32 Lakh in return. 
• If you extend it thrice for 5-5 years (30 years in total) after the initial period of 15 years, and continue to invest Rs 1000 per month, the total amount invested would be Rs 3.60 lakh. You would make a total interest of Rs. 8.76 Lakh on this. Upon maturity, you would get a total of Rs. 12.36 Lakh in return. 

(Investment advice is not being given here by ABP News in any scheme. The information given here is for informational purpose only. Kindly consult experts before depositing money in any scheme.)