PPF or NPS? Invest THIS much monthly to earn Rs 1 crore on maturity

If you invest Rs 12,500 per month in PPF, at the current rate of 7.1% interest rate compounded annually, you will earn Rs 1 crore in 25 years.

New Delhi: In India, Public Provident Fund (PPF) and National Pension System (NPS) are two of the most popular investment schemes offering decent returns to investors. 

Both the investment schemes are run by the Indian government and come with a slew of benefits. PPF was launched by the National Savings Institute in 1968. In comparison, the NPS was initially launched for only government employees in 2004, and was later extended to all in 2009. Also Read: LIC Alert! Never do THIS or get ready to face strict legal action

If you invest in these schemes wisely, you can grow your money easily. At present, PPF is offering an interest rate of 7.1% compounded on an annual basis. One can invest in PPF for 15 years and after maturity, you can either exit the scheme or opt for an extension. In comparison, you can invest in the NPS scheme till superannuation or 60 years of age, whichever is earlier. 

If you’re planning to make Rs 1 crore from PPF investments, you’ll have to keep investing for at least 25 years at the current rate of 7.1% interest rate compounded annually. 

You’ll have to invest Rs 12,500 per month for 25 years to grow your investment to over Rs 1 crore. According to the calculations, your Rs 12,500 per month investment in PPF will turn over Rs 43 lakh in 15 years. 

Likewise, your investment will be around Rs 73 lakh if you keep investing in the scheme for straight 20 years. Also Read: SBI launches Kavach Personal Loan to cover COVID-19 bills, check interest rate and other details