Investment this is the most talk subject these days but with it most discussed question is " which is the most safest investment way "
Mutual funds, fixed deposites one while thinking these options suddenly thinks why shouldn't I then invest into share market. Indian Economy is in still growing stage. Eicher motor share has just got split and now share which was trading around 30,000 rupees now available at 2000 rupees let's buy it and hold it for long period company is good after 5-10 years it will again touch to 30,000 rupees and will give me 1500% return
But hold your thoughts one term you definitely would had heard "Market investment is subjected to market Risk"
Just like the way it happened this time because of corona pandemic. Many people lost their investment and many mutual funds had to be shut down though market recovered but with highly volatile nature no one knows in near future will it going to give returns or loss.
But when all around clouds of uncertainty were gushing one investment option stood rock steady and highly reliable that is "Public Provident fund".
Many thinks PPF investment is way more slow and outdated but if you have heard the name WARREN BUFFET the stock market legend himself believe on phenomenon of "Compounding" and trust me no other investment than PPF can give better results than it.
Let us have look onto it with example.
A 22 year old commerce graduate got a JOB at ABC bank on a monthly salary of 18,000 rupees
In that salary of 18,000 rupees his PF contribution would be around 1400 rupees combined his and company's.
Consider growth of 6% each year then investment stands at
Total monthly deposits
₹2,283,204.96Total interest earned
₹7,532,457.67Final maturity value₹9,815,662.63
But if one on yearly basis raised his contribution to 10% then
Results stand at
Total monthly deposits
₹6,115,930.32 Totalinterest earned₹12,693,149.84Final maturity value₹18,809,080.16