EPF Calculator: There are many schemes in the market to invest your money. Investing in FD and mutual funds is also an option. Let us tell you about EPFO’s PF scheme, where a fund of more than 1 crore can be raised in a salary of just 22 thousand.
EPF Calculator: There are many ways to invest in the market. Investing in FD and mutual funds is also one of them. However, there is a risk in this and you have to deposit money monthly yourself. But, if you work in a company where your EPFO account is open, then there is no need to invest yourself. Even if your monthly basic salary is 22,000, you can still create a fund of Rs 1 crore after retirement.
The Central Government had started the PF Fund Scheme under EPFO especially to provide financial assistance to employees working in the private sector after retirement. Government employees are also included in this scheme. But it is more economical for those working in the private sector. Because they usually do not get any financial help after retirement. If you have opened a PF account under EPFO. Your monthly basic salary is Rs 22,000, then you can easily create a fund of more than Rs 1 crore. Let’s understand its calculation and method of interest.
This much interest is received
How will your fund cross Rs 1 crore by investing in PF? Before understanding this, it is important to know how much interest is received on it from the government. EPFO has increased the interest on PF from 8.15 percent to 8.25 percent. This interest rate is received on your deposit annually and keeps increasing through compounding.
Calculation of fund
After interest, let us tell you how you can collect a fund of Rs 1 crore with a monthly basic salary of Rs 22,000 and DA. Suppose your basic salary is Rs 22,000 per month. You start working at the age of 30. Since then you have been investing in PF. You are putting 12 percent of your monthly basic salary in the account and the company is putting the same amount. The salary is increasing at the rate of 5 percent annually, so at the rate of 8.25 percent interest, your total fund after retirement can amount to Rs 1,04,75,434.
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