Your PF can make you a crorepati!!!!

You will have a real gain only if our Rupee value increases against US Dollar.  If you can get your valuation something like 1 US $ = Rs. 10 or so, obviously, your savings, even for the lower income group, would go beyond reach!  PF is a good investment, similarly, PPF.

Dear friends, the upper limit for deduction of PF is just 6500/- only.Hence only 12% of this i.e., only 780/- will be contributed by your employer.Please clerify me how it will work to be crorepati if I continue for 25 or more years. 

Agree with the article as small regular long term saving can do wonder...but it needs to continue without withdrawing even after one switchs one's job.

Even I had this doubt Ms Sunita..I guess we all need to ask the question to the Economic times person who wrote this article, I just copy pasted here finding it very useful for others...but really a valid question...people who get less salary may become a 1/4th or half of crorepati.....still a crore rupee is a much elusive number for the Indian Middle class.

PF is calculated 12% on the basic. salary included basic+DA+HRA+Medical allowance etc.if your basic is 25000 means your salary should be Rs.40000 or above.then you can be crorepati, but what  is the position for the person getting Rs.10000/-or less.So He cant be crorepati.

very useful information shared by rashmi

Agree with you fully but following concerns are still there :
1) Your suggestion of becoming a crorepati hold valid if an individual was to continue in the same job till they retire. Plus the EPF is still not properly monitored or administered in our country.
2) What will be the value of that crore which you are refering to at the time of your retirement keeping in mind the currency rates today. A few lakhs maybe !
3) Again legal issues crop up when it come sto the employers contribution.

According to me the PPF or Public Provident Fund is a better investment. Not only can you deposit upto 70000 Rs a year (i dont know whether this is changed ?, you get tax exemption plus the source of the fund cannot be questioned. 
Am i right ? please correct me if i am worng.

it is a good instrument for the salary class to begin with but after that it is wise to diversufy ur porfolio to include stocks real estate and MFs Your money becoming crore isnt enough it is important how quick u can make it 

YES THERE IS NO SURPURISE IT WILL MAKE LAKPATI

PROVIDENT FUND is the prudent way of saving that yields uninterrupted interest at a higher rate, irrespective of any crisis in comparison to any nationalised banks.  Above all, your investment is 100% safe and the Government ensures you get your terminal benefits on time!  If you are in a scenario of contributory provident fund, the employer is set to contribute forcibly for your welfare, that's the beauty of things!  

PF is an eye wash especially in private firms.   Management contribution is made part of CTC and they never pay DA and hence gain through gratuity is also less.  Private firms should believ that human resource is their main asset !!!

Im extremely happy with PF saving !!!

Also, more fruitful will be to contribute voluntarily to he provident fund. The quantum of contribution can go to the extent of 100% of your basic salary, and it will earn the same rate of interest, i.e 9.5% at present, and the withdrawal amount is tax free.

Only when one has a salary of more than 1 lakh per month and can save almost half of it in PF !!

Thanks for sharing the information Ms.Rashmi Patil.

At present the interest rate on the basic salary is not 12% The govt has already reduced to 8 or 10 % some 3 to 4 years back.Moreover the management is not contributing the equal amount similar to the contribution of the employees made. Management contributes some flat rate which is very lower than the employee's PF contribution.

Good one ..but how it would be helpful for low income class people.

Great job Ms. Rashmi Patil. Thanks for this type of valuable information. 

This is so true, its the best possible savings that you are doing for your retirement, apart from that if you are able to save more by having LIC or some Mutual funds it will be an added bonus.

You are very correct and I fully agree with you. This small investment ultimately give a huge return in the long run when actually you need them.

Absolutely true. Many are unawre of this calculation and keep withdrawing the PF whenever they change job for some personal expenses. This is a great investment for retirement..

Totally agree with you Rashmi. The current 9.5% tax-free interest is the best possible return that an employee can get from debt investment. All the more since the contribution is made in small amounts, you dont really feel the pinch. Also, withdrawing the PF amount before 5 years of employment is taxable according to your tax slab. Best possible investment for retirement.