PPF (Public Provident Fund): Investing Small Amounts Can Create A Corpus Fund
Public Provident Fund (PPF) is a long-term investment tool suitable for those who want to create a corpus fund with regular deposits of small amounts.
With guaranteed returns, the PPF scheme could be ideal for investors with a very low-risk appetite.Â
All the residents of India are eligible to invest in the PPF scheme. Individuals can open a PPF account by visiting the online portals of banks.
You can even open a PPF account at designated post offices. PPF is considered a safe investment option as it is regulated by the government and gives a steady return.
Form-A to open PPF account
Individuals need to fill up Form A, which is known as the account opening form and submit their KYC (Know Your Customer) documents to open their PPF account.Â
Continue after maturity
You can extend your PPF investment even after its maturity. The maturity period for a PPF account is 15 years, and it can be extended for a block of 5 years after maturity.
The account can be extended one or more times in 5-year blocks. To extend the PPF account, individuals must fill out Form- H.
ContributionsÂ
One needs to contribute a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. Contributions can only happen once a month.Â
For instance, if a person invests Rs 50,000 yearly in PPF, s/he can build a corpus of Rs 13.56 lakh in 15 years. (Calculated at the current interest rate of 7.1 per cent).
Putting in the maximum amount of Rs 1.5 lakh yearly in PPF can build a corpus of Rs 40.68 lakh in 15 years. Opting for extensions can further increase the maturity amount.
PPF loanÂ
Investors can also take a loan against the corpus of their PPF account. This facility is only available between the third and sixth year of starting the PPF account.
The loan amount is capped at 25 per cent of the PPF corpus. The interest charged on the loan is 1 per cent more than the interest offered on the PPF investment. The interest also needs to be paid off in two monthly instalments.Â
Tax benefitsÂ
The contribution to the PPF account can be used as a tax exemption under Section 80C. The interest accrued on the corpus is also exempt from tax.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
