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If you think wealth creation needs a very high income, the Public Provident Fund (PPF) proves otherwise. By saving just ₹417 per day, an investor can build a tax-free corpus of over ₹40 lakh over time. This isn’t magic—it’s the power of disciplined investing and compounding.

Let’s understand the complete math and why PPF remains one of India’s most trusted savings schemes.

Why ₹417 per Day?

Under PPF rules, the maximum investment limit is ₹1.5 lakh per financial year.

• ₹1,50,000 ÷ 365 days ≈ ₹411–₹417 per day

• Monthly equivalent ≈ ₹12,500

• Yearly investment = ₹1.5 lakh

So, setting aside around ₹417 daily allows you to fully utilize the PPF limit each year.

How Much Money Is Invested in 15 Years?

If an investor deposits ₹1.5 lakh every year for 15 years:

• Total investment:
  ₹1.5 lakh × 15 = ₹22.50 lakh

PPF currently offers an interest rate of around 7.1% per annum, compounded yearly
(Note: The rate is set by the government and may change over time.)

What Will Be the Maturity Amount After 15 Years?

At an average interest rate of 7.1%, the maturity value after 15 years will be approximately:

• ₹40.5–₹41 lakh

• Interest earned: ~₹18 lakh

• Tax on maturity: ₹0 (fully tax-free)

👉 PPF falls under EEE category:

• Investment eligible for tax deduction (Section 80C)

• Interest earned is tax-free

• Maturity amount is tax-free

What If You Continue Investing After 15 Years?

PPF does not end compulsorily after 15 years. It can be extended in blocks of 5 years.

Approximate Growth with Extension:

• 20 years: ₹65–₹66 lakh

• 25 years: Close to ₹95 lakh–₹1 crore

The longer you stay invested, the stronger the compounding effect becomes.

Why Is PPF Considered a Safe Investment?

PPF is one of the safest long-term investment options in India because:

• ✅ Government-backed scheme

• ✅ Zero market risk

• ✅ Guaranteed returns (interest rate declared quarterly)

• ✅ Completely tax-free maturity

• ✅ Protected from attachment by courts (in most cases)

• ✅ Ideal for retirement and long-term goals

Who Should Consider PPF?

PPF is best suited for:

• Salaried individuals

• Self-employed professionals

• Conservative investors

• People planning long-term goals like retirement or children’s education

It may not be ideal for those seeking short-term liquidity or high-risk/high-return investments.

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