September 14, 2013 9:53 am
if I invest 25,000 per annum in PPF how much amount I will get after 15 years
Dear Mustafizur, yes the maximum return from PPF can be availed only for the lump sum investment made between 1st to 5th April every year. So your understanding is correct.
You may try FD/RD since your horizon of taking the money out of is just 1 year. MF will be risky for such a short term goal. You may try money market funds as well but they are not an assured return product as FD/RD.
Yes if you have cash on hand, it makes sense to invest in PPF at the beginning of the year to get maximum benefit.
Thanks Vimalraj for sharing the link. It was very useful as I always had doubt how the interest of PPF is calculated. And want to confirm my understanding with that of others on the following.
Because the interest is calculated monthly & I want to invest my total limit of 1L in a year. In that case it is better to invest in the beginning of the financial year only right? As an alternative, I can put that money in MF for one year to get some return(but then tax will apply),in FD/RD for 1 year ( tax applied) & then invest at the end. But my overall gain will be maximum if I invest the money in PPF in beginning of the year only. Am i making right conclusion?
Use this link that will help you. http://www.ppfcalculator.co.in/
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