PPF: Investing ₹1.5 lakh/year will accumulate this much corpus till your child turns 18 — Check calculations

The Public Provident Fund (PPF) is a popular long-term savings option in India, known for its tax benefits and guaranteed returns. This article examines how regular contributions to a PPF account can grow over time, specifically focusing on the 15-year lock-in period. It calculates the potential maturity amount for different annual investment levels, such as ₹50,000, ₹1 lakh, and ₹1.5 lakh, to help investors plan their finances.

For a retail investor, this analysis is crucial for understanding the power of compounding over a long horizon. By comparing the maturity amounts for different contribution amounts, investors can make informed decisions about how much to allocate to this safe instrument. The article also explores the possibility of extending the account beyond the initial 15 years, which can further enhance the corpus.

The key takeaway for investors is the discipline required to maintain regular contributions. The calculations serve as a benchmark to set realistic financial goals for their child's future, such as higher education or marriage. It highlights how consistent small investments can lead to significant wealth accumulation over 18 years, provided the account is held for the full tenure.