BUMPER RETURN! Invest Rs 1,000 per month in PPF, get Rs 26.32 lakh at the time of retirement; Deets inside

This is an uphill battle to make the right choice for investment. Continue reading to simplify the investment calculations.

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New Delhi: For long-term investors who are risk-averse and wish to park their money in risk-free schemes, Public Provident Fund, or PPF, is one of the most well-liked investing options among all Indian citizens. The scheme offers reliable and alluring returns. An investor can acquire a sizeable sum of wealth through PPF in a few years. It can be availed by both Employed and Self Employed people. At present, the interest of 7.1 percent is available on PPF.

The interest income on maturity and the maturity amount is completely tax-free here. In other schemes, returns are definitely higher in mutual funds, but up to 20 percent long-term capital gains tax is levied. It becomes a little challenging to determine the interest rates and returns on your PPF account. But don't worry! Read on to simplify these challenging computations.

Return calculator

Suppose you start investing Rs 1,000 per month for the time period of 15 years, your deposited amount will be Rs 1.8 lakh. From the 7.1 percent rate of interest, the total interest you will get is Rs 1.45 lakh. You will gef Rs 3.25 lakh as a maturity amount.

If you opt to extend your investment for 25 years more in the succession of 5 years, you will get Rs 26.32 lakh.

(Disclaimer: This article is for information purposes. The calculator is also mostly based on assumptive figures to give an example of a certain type. The article does not intend to give any financial advice of any sort. Investors/subscribers must check with their portfolio managers before investing in any scheme/policies.)