In Plan 1 mentioned below, I have taken an investment of Rs 3,000 per month or Rs 36,000 per year. According to Plan 1 you can be a crorepati in the next 40 years. You can decrease the number of years by investing more per month or by increasing your investments gradually.
Assumptions
~ PPF will give a consistent return of 8 per cent per annum.
~ Withdrawal will not attract capital gain tax, that is, the tax structure would maintain its status quo.
Advantage
~ Extremely low risk, since the government manages PPF.
Disadvantages
~ Longer tenure.
~ Yielding 8 per cent interest consistently seems to be very unlikely. Low risk investors need to adjust their investment based on the interest rates.
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