Investing Small Amounts Can Create A Corpus Fund

PPF (Public Provident Fund): Investing Small Amounts Can Create A Corpus Fund

One can give a contribution at least Rs 500 and a most of Rs 1.5 lakh in a 12 months

New Delhi:

Public Provident Fund (PPF) is a long-term funding software appropriate for individuals who need to create a corpus fund with common deposits of small quantities.

With assured returns, the PPF scheme may well be perfect for traders with an excessively low-risk urge for food.

All the citizens of India are eligible to spend money on the PPF scheme. Individuals can open a PPF account through visiting the net portals of banks.

You may also open a PPF account at designated publish places of work. PPF is thought of as a protected funding choice as it’s regulated through the federal government and offers a gentle go back.

Form-A to open PPF account

Individuals wish to refill Form A, which is referred to as the account opening shape and put up their KYC (Know Your Customer) paperwork to open their PPF account.

Continue after adulthood

You can prolong your PPF funding even after its adulthood. The adulthood duration for a PPF account is 15 years, and it may be prolonged for a block of five years after adulthood.

The account can also be prolonged a number of occasions in 5-year blocks. To prolong the PPF account, people should fill out Form- H.


One must give a contribution at least Rs 500 and a most of Rs 1.5 lakh in a monetary 12 months. Contributions can most effective occur as soon as a month.

For example, if an individual invests Rs 50,000 once a year in PPF, s/he can construct a corpus of Rs 13.56 lakh in 15 years. (Calculated on the present rate of interest of seven.1 in line with cent).

Putting within the most quantity of Rs 1.5 lakh once a year in PPF can construct a corpus of Rs 40.68 lakh in 15 years. Opting for extensions can additional build up the adulthood quantity.

PPF mortgage

Investors too can take a mortgage in opposition to the corpus in their PPF account. This facility is most effective to be had between the 3rd and 6th 12 months of beginning the PPF account.

The mortgage quantity is capped at 25 in line with cent of the PPF corpus. The passion charged at the mortgage is 1 in line with cent greater than the passion introduced at the PPF funding. The passion additionally must be paid off in two per thirty days instalments.

Tax advantages

The contribution to the PPF account can be utilized as a tax exemption beneath Section 80C. The passion gathered at the corpus could also be exempt from tax.

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