@jossystephan this invest in ppf before april 5th is over hyped. you will still get interest from that month of May say if you invest on May 3rd. if you invest on april 25, then too you will get interest from May.
this was all a little big deal when ppf had better interest rates than bank fds and investing in equity instruments was not as prominent for 80C.
@gvze and you answered yourself mate. investment done before 5 accumulates interest for april. compound that interest as well.
ik hype is too much but if someone wants to draw every bit of worth then april 5 it is
@glasmom say if you put 1.5 lakhs. then, 1/12th of 7.1% of it is the difference for that yr. which is 887.5 rs. and assuming that this amount was in your savings account you would get a min of 3% atleast on itz which is 375rs, so the difference is 512rs man. that is all. its not worth the time people spend losing their mind on it.
@gvze Thanks for clarifying on that.
However, i think this difference will be much if there's already an amount in ppf & it will be compounded with it, right? Is my understanding correct??
Genuine concern, as I am new to it. Thanks in advance!!!
@beach123 no it doesnt make that difference no matter how big existing corpus is. the article in the post is misleading because it talks of the difference in returns made compared to lumpsum at beginning of the financial yr and end of the financial year.
@gvze Thanks, really appreciate it.
I was also wondering about it(comparison with lumpsum investment made at the end of the FY) which is not most people do.
And, that's what confused me.
I usually invest it on monthly basis.
Thankks again!!
@beach123 the earlier you invest the better. say if you already decided to put atleast 50k under 80c in ppf, do it earlier. there is no specific advantage by putting the money month on month. if you dont have all the cash ready to invest, then its ok. else dont stagger the investments in ppf.
@gvze its fine mate. you can leave the 512 bucks . no worries. we are discussing assumptions. everyone has a different taste of investment. and the concept here is of compounding in long run which you are not looking.
@glasmom its not that big a deal. even that 512rs compounded for 15 yrs is going to be around 2000rs. that is all for 1 month delay in depositing the full lumpsum of 1.5 lakhs.
i already made the deposit in PPF today. some 50k. dont intend to put more in it since my equity exposure is very low and will use ELSS at some point during the yr.
@gvze It leads to a huge difference after compounding. The difference between getting 7.1% interest rate and a 6.51% interest rate (which is 11/12) every year on a yearly investment of 1.5L for 15 years, would be close to 2.02L.
@khordel While I agree, there's enough data to convince me otherwise. Look up Nifty50 CAGR since inception. Only way that'll change is if Indian economy starts to shrink, which won't happen for many years/decades to come. By then, ELSS returns would have surpassed anything PPF can generate by a huge margin.
