Your child can be a crorepati after 25 years; Here is how

If you invest Rs 1.5 lakh or Rs 12,500 per month in this plan for your child, he or she will get Rs 1,18,43,162 after 25 years.

In this investment scheme for minors, one can invest maximum up to Rs 1.5 lakh in a year or Rs 12,500 per month in this plan. Photo: Reuters

PPF Minor Account: Public Provident Fund or PPF is generally considered as a retirement oriented investment, however, we must not forget that an investment is just a tool to achieve your financial goal through maximisation of one's investment. In PPF also, if the account is opened in the name of your minor child, it can work as an investment goal that can help you fish out huge amount for the higher studies of your child or a good financial support for your child when he or she would begin his or her career as a professional.

Speaking on the PPF Minor Account Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "One can open PPF Minor Account in the name of one's child. The PPF Minor Account would also fetch the same benefits to the father or mother that they would get after having their own PPF account. In PPF Minor Account too, an investor can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a year. A PPF Minor Account can be opened with a deposit of Rs 100 but within a year of PPF account opening, the minimum balance in the PPF Minor Account has to be Rs 500."

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SEBI registered tax and investment expert Manikaran Singhal said, "PPF Minor Account also makes an investor eligible for investments up to Rs 1.5 lakh under Section 80C of the Income Tax Act 1961 but this Rs 1.5 lakh limit would include all investments in various schemes that fall under Section 80C income tax exemption." Manikaran Singhal went on to add that in the long-term, one can get around 8 per cent annual return on one's PPF investment though today it's 7.9 per cent.

Source: ClearTax PPF Calculator

So, if we go by this calculation and take maximum investment of Rs 1.5 lakh in PPF Minor Account for next 25 years, the PPF maturity amount would be Rs 1,18,43,162, reflects PPF calculator.

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