In today’s time, every person wants his small savings to become a huge amount in the future, but due to the fluctuations and risks of the stock market, many people are afraid to invest. For such people, Public Provident Fund (PPF) is a government option, which is completely safe and helps in creating a good fund in the long run. The special thing is that you do not need to invest a lot of money every month. If you deposit just Rs 4,000 per month regularly, this amount can turn into lakhs of rupees in a few years.

What is PPF and why is it special?

PPF i.e. Public Provident Fund is a savings scheme supported by the Government of India. The money invested in it is considered completely safe, because it is guaranteed by the government. This scheme has been specially designed for those who want to save with discipline for a long time. The biggest feature of PPF is that the interest received in it is tax-free and there is tax exemption on investment also i.e. savings as well as tax relief.

How does the PPF scheme work?

The tenure of PPF account is 15 years. In this you can invest minimum Rs 500 and maximum Rs 1.5 lakh in a year. You can invest all at once or in installments. At present, approximately 7.1 percent compound interest is available annually on PPF. Interest is compounded every year, making the money grow gradually as it is a government scheme, so there is no market risk.

Even when your PPF account completes 15 years, you are not forced to withdraw money. If you wish, you can extend the account for 5-5 years. Overall it can be operated for 25 years. If you do not withdraw money, interest continues to be earned on the deposited amount. This increases your savings without any extra effort.

How to earn Rs 13 lakh by depositing just Rs 4,000 a month?

If you deposit Rs 4,000 every month i.e. Rs 48,000 in a year in PPF account and continue this investment for 15 years, then the total investment will be Rs 7.20 lakh and the amount received after 15 years will be around Rs 13.01 lakh. The total benefit (interest) from this will be around Rs 5.81 lakh, that is, your small monthly savings creates a good fund for you.

What if investment continues for 25 years?

If you continue the investment even after 15 years and keep the money in PPF for a total of 25 years, then the magic of compound interest becomes more clearly visible. The estimated amount after 25 years will be around Rs 32.98 lakh. Out of this, about Rs 20.98 lakh is made only from interest. This is a great option for those who want to create a secure fund for retirement or children’s future.

Why is PPF a great option even today?

PPF is completely safe and government guaranteed, tax-free returns, facility to start with a small amount, ability to build a large corpus over a long period of time, and stable returns without any risk. If you want your small savings to gradually turn into a big sum, then PPF is one of the most reliable schemes even today.

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Lic retirement plan scheme: All people walk while working or while doing business and plan for their retirement. Because when he takes retirement, then after that, how will his expenses run and prepare retirement funds. So that they do not have to depend on others for their expenses. If you are also thinking of investing in a retirement scheme to get pension after retirement.

So this scheme of LIC may come very little to you. After investing in this retirement scheme, you will get a pension of more than 1 Lakh rupees every time. Let us tell you which is this scheme and how can it be invested in it.

LIC should invest in new life peace plan

If you want to take a pension of 1 lakh rupees every year after retirement. So you can invest in LIC’s new life peace policy. Now let us tell you that this is an exclusive plan. You can take it in two ways. In which Deford Ananuity for Single Life and Deford Unanyut for Jint Life i.e. you can make a single invest or if you want to be commented. In this, you can get your pension limit fixed. After retirement, you will continue to get a lifetime. Let me tell you that you are also given a lot of interest in it.

https://www.youtube.com/watch?v=zaamcvp2_5g

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Will get more than one lakh pension every time

This new life peace policy of LIC has been created from 30 years to the age of 79 years. If you are 55 years old. And start investing in the scheme. So you have to deposit 11 lakh rupees at a time. After this, your money will be on hold for 5 years. And then after the age of 60, you will get one 1,01,880 rupees every year. If you take pension in 6 months. So you will get Rs 49,911, that is, if you talk every month, you will get Rs 8,149 as a pension.

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This is how you can take policy

If you want to take the new life peace policy of LIC. Then you can go to your nearest LIC office. Apart from this, you can also apply by visiting LIC’s official website https://licindia.in/.

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Whenever we make our retirement planning, we usually guess the money in today’s value. But have we thought what will be the cost of our money after 20-30 years? Inflation gradually reduces the purchase power of money. That is, what seems cheap today can be very expensive in future.

How does inflation affect?

Understand from an example, suppose, in 2010, the price of a gas cylinder was Rs 350, but in 2025 it has increased to 1,050. That is, on average, prices have increased at the rate of 7.6 percent per annum. Similarly, in 2009, 2 liters of petrol was available for 100 rupees, but today only 1 liter is available. It is clear that inflation has reduced the strength of money about half during this period.

What do inflation figures say?

The government uses the Consumer Price Index (CPI) to measure inflation, which tracks the prices of essential things like eating and drinking, clothes, home, transport, health. In February 2025, the CPI inflation was 3.61 percent, but on an average it remains around 5 percent.

In 2013, the CPI inflation reached 12.2 per cent, while in 2017 it fell to 1.5 per cent. RBI tries to remain on a target of 4 per cent, but in reality the prices of essential things are always higher than this.

What is the real return on investment?

According to the report of Financial Express, 6 % in fixed income schemes (eg bank FD, PPF, EPFO, Post Office Savings). 8.25 percent of the annual return is received, but after reducing inflation, the real return remains only 2-3 percent. Equity-linked investment such as mutual funds gives 12 %-15 per cent annual returns, but after adjusting inflation, the real return remains between 6-9 per cent.

How to make a fund of 1 crore

Let us understand how inflation affects our savings and money price. If a 40 -year -old person wants to make a fund of 1 crore for retirement today and the rate of inflation is considered to be 5 per cent annually, then he will have to invest in 18,000 per month Mutual Fund SIP, in which he got 15 per cent annual returns.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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