Money Tips: 100% guarantee of becoming a millionaire, just memorize the formula of 15+5+5, then see how amazing it will be..

Crorepati Tips: Many people think becoming a crorepati is a dream, but in today's time it is not very difficult to turn this dream into reality because there are many options available in which we can accumulate a good fund by investing for a long time. If you are one of those investors who like to invest without any risk, then you can also fulfill your dream of becoming a crorepati through the Public Provident Fund (PPF). You just have to apply the formula of 15+5+5 while investing in this scheme.

Know what to do

At present, 7.1 percent interest is being given to PPF. Usually, this scheme matures in 15 years. But to become a crorepati, you have to invest in it for 25 years by applying the formula of 15+5+5.

How to invest for 25 years

In the formula 15+5+5, 15 means maturity period and 5+5 means two extensions of 5 years each. As per the rules, when you get an extension in the PPF scheme, it is for 5 years at a time. In such a case, you will have to get an extension twice. In this way, you can invest for 25 years.

How to become a millionaire?

A maximum of Rs 1.5 lakh can be invested in a financial year in the PPF scheme. If you deposit Rs 1.5 lakh annually in it continuously for 25 years, then you will become a millionaire in 25 years.

Understand how through calculation?

According to the PPF calculator, you will invest Rs 37,50,000 in 25 years. As per the interest rate of 7.1 percent, you will get Rs 65,58,015 as interest. In this way, after 25 years, you will get a total of Rs 1,03,08,015 by combining your investment and the interest received on it.

How will the PPF extension happen?

For the extension of PPF, you will have to give an application to the bank or post office, wherever you have an account. You will have to give this application before the completion of 1 year from the date of maturity and you will have to fill a form for extension. The form will be submitted to the same post office/bank branch where the PPF account has been opened. If you are unable to submit this form on time, then you will not be able to contribute to the account.

If you start investing at 25, you will be a millionaire at 50
If you start investing in this scheme at the age of 25, you can become a millionaire by the age of 50, and if you start investing at the age of 30, you can become a millionaire by the age of 55 and secure your old age.

This scheme will also save tax in three ways.
Another advantage of PPF is that it saves tax in three ways because this scheme is kept in the EEE category. The money deposited in PPF, the interest received and the amount received on maturity is completely tax free.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.