Investment Compounding Planner
Select financial instrument, contribution frequency, and timeline to project returns
Projected Maturity Corpus & Wealth Gain
Power of CompoundingIncludes ₹0 invested principal + ₹0 compound wealth gain
Year-by-Year Wealth Growth Curve
Wealth Creation Strategies for Government & PSU Employees
Public sector and central government employees have guaranteed employment and predictable monthly pay increments. By directing surplus monthly cash flows into a balanced portfolio of equity mutual funds (SIP) and sovereign fixed-income instruments (PPF, SSY), employees can generate multi-crore retirement corpuses over a 15- to 25-year career.
The Magic of EEE (Exempt-Exempt-Exempt) in PPF and SSY
Both Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) enjoy triple tax exemption:
- Entry: Investment is eligible for deduction under Section 80C (up to ₹1.5 Lakhs).
- Accumulation: Annual compounding interest is 100% tax-free.
- Maturity: The entire lump sum withdrawal at maturity is completely exempt from income tax.
Equity SIP vs. Debt Compounding
While PPF and SSY provide sovereign security and guaranteed real yields, equity SIPs through diversified index funds (e.g. Nifty 50 or Nifty Next 50) provide inflation-beating capital appreciation over tenures exceeding 10 years, compounding at historical CAGRs of 12% to 14%.
Frequently Asked Questions (Investment & Savings)
What is the maximum annual deposit allowed in PPF?
The statutory maximum deposit permitted across all PPF accounts held by an individual is ₹1,50,000 per financial year, with a minimum deposit requirement of ₹500.
What is the taxation on equity mutual fund SIPs?
Under Budget 2024 revisions, Long Term Capital Gains (LTCG) on equity mutual funds held for more than 12 months are exempt up to ₹1,25,000 per financial year, and taxed at 12.5% on gains exceeding ₹1.25 Lakhs.