Public Provident Fund (PPF) is a good choice for long term investment. It is opened for 15 years and after that extended to 5 years any number of times. Maximum Limit to get Income Tax Rebate is 1 Lac rupees per year and minimum amount should be 500 for each year.
You can get PPF account details at http://en.wikipedia.org/wiki/Public_Provident_Fund_India. There is an interesting calculator about PPF is at http://www.ratekhoj.com/ppf-calculator.php. If we plan to invest 12000 a year and we have it in a lumpsum, we should invest it between 1 to 10 April of each year to earn more interest. But if you don't have lumpsum amount then there is another idea. Open a RD of 1000 such that it will mature in the last week of March. Then you can invest the lumsum amount in April to gain more interest. Lets take this scenario and see the difference-
You can see the difference. The difference is of 5808 rupees.
You can get PPF account details at http://en.wikipedia.org/wiki/Public_Provident_Fund_India. There is an interesting calculator about PPF is at http://www.ratekhoj.com/ppf-calculator.php. If we plan to invest 12000 a year and we have it in a lumpsum, we should invest it between 1 to 10 April of each year to earn more interest. But if you don't have lumpsum amount then there is another idea. Open a RD of 1000 such that it will mature in the last week of March. Then you can invest the lumsum amount in April to gain more interest. Lets take this scenario and see the difference-
You can see the difference. The difference is of 5808 rupees.
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