The Public Provident Fund (PPF) offers a secure and tax-efficient avenue to grow your wealth, with interest compounded annually and credited at the end of each financial year. Currently, the PPF interest rate stands at 7.1%, and with a mandatory lock-in period of 15 years, investors can benefit from long-term savings. Moreover, contributions up to Rs 1.5 lakh per year qualify for tax deductions under Section 80C, and both the interest and maturity amounts are entirely tax-exempt.
To potentially double your investment, it’s essential to employ smart strategies. Starting early maximizes the power of compounding, while consistently investing the maximum permissible amount of Rs 1.5 lakh annually enhances returns. Investors can also extend the PPF term in blocks of five years after the initial lock-in period, allowing their balance to grow without additional deposits.
By making regular contributions and avoiding withdrawals, investors can see their PPF investments grow significantly, making it an ideal solution for long-term financial goals such as funding a child’s education or securing a home purchase. With patience and disciplined investment, PPF remains one of the safest ways to build wealth in a tax-efficient manner.
Source: Financial Express
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