Business News Desk: Becoming a millionaire is not rocket science. For this you just have to understand the strategy of savings and investment and have a little patience because any such work takes a little time. Now it comes to where to invest. If you can take a little risk then a scheme like Mutual Fund SIP can be helpful for you. But if you do not like risk then you can take the option of PPF i.e. Public Provident Fund. A maximum of Rs 1.5 lakh can be invested annually in PPF. At present 7.1 percent interest is being given on this scheme. Know here how you can add funds of more than Rs 2 crore through this scheme.
This is how Rs 2,26,97,857 will be added by the age of 60
PPF scheme matures in 15 years, but you have to get its extension. PPF can be extended any number of times in a block of 5 years. To add Rs 2,26,97,857, you will have to invest Rs 1.5 lakh in PPF every year i.e. deposit Rs 12,500 every month. After this you will have to get it extended 4 times in a block of 5 years. In this way the total duration of your PPF account will be 35 years. If you do this, you will invest a total of Rs 52,50,000 in 35 years, but you will get Rs 1,74,47,857 as interest on it. In this case, you will get Rs 2,26,97,857 on maturity. If you start this investment at the age of 25 and continue for 35 years, then at the age of 60 you will have Rs 2,26,97,857 as retirement fund.
Account Extension with Contribution
Keep in mind that whenever you want to get extension of PPF, it has to be done with contribution. For this, you will have to submit an application to the bank or post office where you have an account. You will have to give this application before completion of 1 year from the date of maturity and fill a form for extension. The form will be submitted in the same post office/bank branch where the PPF account has been opened. If you are not able to submit this form on time, you will not be able to contribute to your account. Therefore, take special care of this.
