Arthgyaan

Supporting everyone's personal finance journey

How much money has been made by investing in the Public Provident Fund (PPF)?

This article shows the maturity amount of investing in the Public Provident Fund (PPF) for 15 years as per historical interest rates.

How much money has been made by investing in the Public Provident Fund (PPF)?


Posted on 22 Oct 2023
Author: Sayan Sircar
5 mins read
📢Get new post notifications on WhatsApp!

This article shows the maturity amount of investing in the Public Provident Fund (PPF) for 15 years as per historical interest rates.

How much money has been made by investing in the Public Provident Fund (PPF)?

📚 Topics covered:

What is the public provident fund (PPF)?

As per Wikipedia, the Public Provident Fund (PPF) is a savings-cum-tax-saving instrument in India introduced by the National Savings Institute of the Ministry of Finance in 1968. PPF allows you to save small sums of money, and offers a guaranteed interest rate and tax benefits that make it attractive for many conservative investors.

PPF is a fantastic debt instrument which has guaranteed return (though it has fallen over time) but it is still higher than the market rate in other options. Since there is a 15 years lock-in (which can be extended in blocks of 5 years) and to keep the account active you need only ₹500/year, open it and keep it active. Later when you need to invest more amount in long-term debt investments, both the maturity of PPF will be closer and you will have many options like debt mutual funds. You can open PPF in your own name plus in the name of your parents if they don’t have one already. When you get married and have children, you repeat this for your spouse and children.

PPF is an EEE-class instrument which means that it is exempt from tax on investment up to 1.5 lakhs/year under 80C, exempt from taxation during growth and there is a full exemption on taxes at maturity.

The latest PPF rate is 7.1%

However, the interest rate, as well as the limits of investment has varied over the years like this:

Historical interest rate and investment limits of PPF

Recent articles:
1 / 3
<p>As the market keeps rising to new all-time high figures, how much returns should equity investors expect from their investments running in SIP form.</p>
2 / 3
<p>This article discusses an alternative retirement portfolio construction method for generational wealth transfer.</p>
3 / 3
<p>This article gives the solution for buying small amounts of gold over the years in case buying SGB is not an option.</p>

Join the Arthgyaan WhatsApp community: You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

How much money has been made by investing in the Public Provident Fund (PPF)?

We have calculated how much anyone could have got by investing the maximum allowed amount per year as per historical interest rates and created this table:

Money Made Via 15 Years Of Investment In PPF (₹ Lakhs)

Each value in the table is for a 15 year investment in PPF ending on the 1st of that month. Please note that in actual life, PPF is not an exact 15 year investment as the account can be opened anytime but the maturity happens on 1st April as explained here: When does a PPF account mature?.

How much was allowed to be invested in PPF as per historical data?

Using the same logic, we have also plotted the maximum amount that was allowed to be invested over the years in PPF:

Total Invested In PPF Over 15 Years (₹ Lakhs)

You can see that over time, limits of investment in PPF has been steadily increased.

This article is a part of our detailed article series on Public Provident Fund (PPF). Ensure you have read the other parts here:

What's next? You can join the Arthgyaan WhatsApp community

You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Worked out case studies for goal-based investing

Previous and next articles:

<p>This article explores if the worst performing equity mutual funds have beat FD and RD returns.</p>
Mutual Funds
Do the worst performing equity mutual funds beat FD?

This article explores if the worst performing equity mutual funds have beat FD and RD returns.

Published: 18 October 2023

10 MIN READ


<p>This article explores how much return has come from the US stock market using data from the 1870s.</p>
Market Movements
How much Long-Term Wealth has been Built with Equity Investing in the US Stock Market?

This article explores how much return has come from the US stock market using data from the 1870s.

Published: 25 October 2023

4 MIN READ


Latest articles:

<p>This article shows how an investor should invest a lump sum amount in the stock market when the market has reached an all time high.</p>
Market Movements
How to invest a lump sum amount when the stock market is at an all-time high?

This article shows how an investor should invest a lump sum amount in the stock market when the market has reached an all time high.

Published: 10 December 2023

4 MIN READ


<p>As the market keeps rising to new all-time high figures, how much returns should equity investors expect from their investments running in SIP form.</p>
Market Movements
Nifty above 21000: what should you do with your equity SIPs? Start, stop or continue?

As the market keeps rising to new all-time high figures, how much returns should equity investors expect from their investments running in SIP form.

Published: 8 December 2023

3 MIN READ


Topics you will like:

Asset Allocation (20) Basics (8) Behaviour (10) Budgeting (11) Calculator (17) Case Study (6) Children (14) Choosing Investments (40) FAQ (7) FIRE (13) Gold (14) Health Insurance (4) House Purchase (21) Insurance (15) International Investing (10) Life Stages (2) Loans (13) Market Movements (17) Mutual Funds (34) NPS (6) NRI (15) News (10) Pension (8) Portfolio Construction (47) Portfolio Review (27) Reader Questions (6) Real Estate (6) Retirement (38) Review (13) Risk (6) Safe Withdrawal Rate (5) Set Goals (27) Step by step (15) Tax (43)

Next steps:

1. Email me with any questions.

2. Use our goal-based investing template to prepare a financial plan for yourself
OR
use this quick and fast online calculator to find out the SIP amount and asset allocation for your goals.

Don't forget to share this article on WhatsApp or Twitter or post this to Facebook.

Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.

More posts...

Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.

This post titled How much money has been made by investing in the Public Provident Fund (PPF)? first appeared on 22 Oct 2023 at https://arthgyaan.com


We are currently at 327 posts and growing fast. Search this site:
Copyright © 2021-2023 Arthgyaan.com. All rights reserved.