Investment: A fund of lakhs can be created with just Rs 1000 every month, know which scheme will give the most benefit..
People often think that investing requires a large sum of money, but the truth is that if you invest small daily savings in the right place, a substantial corpus can be created over time. Today, we'll tell you how much money you can accumulate if you save just ₹1,000 every month and invest in four different schemes: PPF, SIP, SSY, and Post Office RD, and which scheme might be best for you.
PPF: Safe and Tax-Free Investment
Public Provident Fund (PPF) is a government scheme that is not only safe but also offers tax benefits. It currently offers an annual interest rate of 7.1%. If you invest ₹1,000 every month in PPF for 15 years, your total investment will be ₹1.80 lakh, earning you approximately ₹1.45 lakh in interest. This means you'll receive ₹3,25,457 upon maturity. It also offers partial withdrawals after 5 years, allowing for withdrawals as needed.
Smart Investment in SIP Mutual Funds
If you're willing to take a little risk and want higher returns, SIP (Systematic Investment Plan) is a good option. Through SIP, you invest in equity mutual funds, which can yield annual returns of up to 12%. A monthly SIP of ₹1,000 will result in a total investment of ₹1.80 lakh over 15 years, but you can earn approximately ₹2.95 lakh in interest. This means the total corpus at maturity can reach ₹4,75,931. The special feature of SIP is that you can withdraw funds at any time and increase your monthly investment amount over time.
SSY: The Best Scheme for Daughters
Sukanya Samriddhi Yojana (SSY) is a government scheme for daughters. It currently offers an annual interest rate of approximately 8.2%. This scheme is open only in the name of the daughters. If you invest ₹1,000 every month, you will have an investment of ₹1.80 lakh in 15 years and earn ₹3.74 lakh in interest. This means that at maturity (at 21 years), you will have a total corpus of ₹5,54,206. This scheme also offers tax exemptions, making it an excellent option for parents.
Post Office RD: A Small but Safe Investment
The Post Office Recurring Deposit (RD) is a simple and safe investment option, currently offering an annual interest rate of 6.7%. The tenure of an RD is 5 years. Investing ₹1,000 every month will result in an investment of ₹60,000 in 5 years and an interest of ₹11,369. This means a total of ₹71,369 in 5 years. If you extend it for another 5 years, then by investing ₹1.20 lakh in 10 years, a fund of ₹1,70,857 can be created.
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