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You can create a fund of more than Rs 1 crore by investing in PPF.


The government currently runs 9 types of small savings schemes.

Investing in the Public Provident Fund (PPF) is a reliable way to deal with inflation in the long term. By investing in it regularly you can collect more than Rs 1 crore. We are telling you here how this financial goal can be achieved.

Know PPF

PPF is a government savings scheme, whose objective is to promote long-term investment. The government reviews the interest rate of this scheme every quarter and for the current quarter, this rate is 7.1 percent. Tax exemption is also available on this scheme. Its investments, interest, maturity amount, etc. are all tax-free.

Benefit of compound interest

The importance of returns in PPF is also related to compound interest. With regular investment and the facility of compound interest on it, your investment grows rapidly. According to an estimate, if you invest Rs 1.5 lakh annually for 15 years, you will get a total interest of Rs 18.18 lakh and you can get Rs 40.68 lakh as total amount. Also, if you invest Rs 1.5 lakh annually for 20 years, you will get an interest of Rs 36.58 lakh, while the maturity value can be Rs 66.58 lakh. If you invest Rs 1.5 lakh for 30 years, you can get a total amount of up to Rs 1.54 crore.

This assessment is based on clear tax estimates. You'll find many more calculators online that can help you estimate your returns.

Benefits of PPF

Tax Benefits: If you invest in PPF, you can get a rebate of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.

Tax-Free Returns: The interest and maturity amount received on this investment are completely tax free.

Safe investment: PPF is a government scheme, hence it is a safe investment option.


Becoming a millionaire through PPF requires patience and discipline. If you invest the maximum amount for a long period of time and make smart use of account extensions, you can avail the facility of this scheme and achieve your financial goals.