A smart investor is the one who starts preparing from now for shaping his future. Such smart investors do not have to worry financially at any stage of their age.
If you want a big amount at the age of 40, then for this it is important that you start investing now. Today we will tell about this method of investment.
How to invest: If you want 20 lakh rupees at the age of 40, then you can invest in Public Provident Fund (PPF) account. Suppose your age is 25 years, then open PPF account today. Your investment amount should be Rs 6500 every month for 15 years.
Accordingly, over a total period of 15 years, your deposit amount will be Rs 11,70,000. On this, at the current rate of 7.1 percent, interest will be Rs 8,81,193. Thus, the maturity amount will exceed Rs 20 lakh.
Special Features of PPF: There are many special features of PPF. For example, this is a tax saving scheme. You can also save tax by investing in it. Apart from this, there is a locking period of 15 years. You can withdraw money before this only in certain circumstances.
The loan can be availed between the third to the sixth financial year. If you want to extend the account for 5 years after maturity, then you will get the option for this also.
At the same time, in a financial year, a minimum amount of Rs 500 and a maximum of Rs 1,50,000 can be deposited. This amount can be deposited on monthly, half yearly or yearly basis. Loan facility is also available against PPF account.