Monthly investment in EPFO can help you get Rs 1.5 crore - Find out how

The Employees’ Provident Fund (EPF) is a financial tool provided by the Government of India responsible for managing provident funds and pensions. Every month a designated amount is deducted from the salary slip and added to the EPF account. 

This EPF account can be accessed by the subscriber at a later stage, probably after retirement. Believe it or not, as small as it may seem, this investment can reap huge benefits in the later stage. Notably, the employer also contributes the same amount to the fund. 

For the unversed, the EPF offers 8.5 percent rate of interest for the financial year 2020-21. The interest rate on this is higher than what most banks offer on schemes provided by them. 

With such a rate of interest, if a person has a basic salary of Rs 25,000 per month then they can accumulate a fund of Rs 1.65 crore in 35 years. 

As per Jay Jhaveri, partner at Bhuta Shah & Co LLP, "One of the most important advantages of these investments is that they act like a micro deduction at source, something that will not create a big dent in a household income, and at the same time the returns not only provide inflation protection but also emergency assistance."