If you think building a large fund is impossible with a modest monthly income, it’s time to reconsider. The Public Provident Fund (PPF), a government-backed savings scheme, offers a secure and tax-efficient way to build long-term wealth—even with a small monthly investment.
With just ₹3,000 invested monthly in a PPF account, you can accumulate close to ₹10 lakh by the end of the tenure. Double that to ₹6,000 per month, and the returns can soar to ₹20 lakh or more over time. The secret lies in starting early and staying consistent.
The PPF is a long-term savings scheme introduced by the Government of India. It encourages small savings with a blend of attractive interest rates and tax benefits. The scheme has a maturity period of 15 years, and the interest earned is completely tax-free under Section 80C of the Income Tax Act.
Let’s break it down:
Monthly Investment: ₹6,000
Annual Contribution: ₹72,000
Tenure: 15 years
Current Interest Rate: 7.1% per annum (compounded annually)
Based on this, your total investment over 15 years will be ₹10.8 lakh. Thanks to the power of compound interest, this amount can grow to approximately ₹19.9 lakh by maturity. The exact amount may vary slightly depending on changes in the interest rate.
✅ Government-Backed Security: Your money is safe.
✅ Tax-Free Returns: Both interest and maturity amount are tax-exempt.
✅ Long-Term Growth: Ideal for retirement or future planning.
✅ Flexible Contributions: Minimum ₹500 to a maximum of ₹1.5 lakh annually.
The earlier you begin your PPF journey, the more time your money gets to grow. Even a small amount can lead to big savings if invested consistently and patiently.
So if you're aiming to become a "lakhpati" without taking high risks, PPF might be the perfect path for you. Start with as little as ₹3,000–₹6,000 per month and watch your savings turn into a sizeable corpus over the years.
