Have you heard of the PPF Scheme?
Have you heard of the Public Provident Fund Scheme? This is a simple, low-risk way to save money and it’s available to everyone in India above the age of 18. Here’s everything you need to know about this investment plan before opening an account.
There are many benefits to investing in the PPF
You can earn up to 8.7% interest on your money and deposit between Rs 500 and Rs 1 lakh, for a maximum period of 15 years. The interest rate on investments increases with time; hence, it is an excellent way to plan long-term goals like buying a house or paying for your child’s education. A steady source of income at retirement is also one of its biggest benefits – around 76% will get back their principal amount (Rs 1 lakh) in April 2039 after they turn 60!
What is a Public Provident Fund (PPF)?
A Public Provident Fund (PPF) is a long-term investment scheme run by post offices. It was started in 1968 and allows an individual to invest money (at least Rs 1,000 per month) for 15 years and get attractive returns with minimal risk. If you haven’t already heard about it, perhaps it’s time to learn more about it!
How does it work?
The Public Provident Fund is a type of savings scheme for retail investors. For starters, Rs 1,000 can be deposited in a PPF account once a year, but only once and on or before March 31. If you plan to deposit more than Rs 1,000 in one year, it has to be broken up into multiple installments.
What kind of investment suits my needs best?
The Public Provident Fund (PPF) is a time-tested investment vehicle for both short-term and long-term goals. It is considered one of safest options available in India, due to its low rate of interest. While it does not beat other schemes in terms of returns, most experts recommend it as a safe option for those looking to build wealth slowly over a long period of time. Like all other investment vehicles, there are certain things that you need to keep in mind before signing up for PPF account.
Why should I invest in this scheme as opposed to others?
The Public Provident Fund (PPF) is an excellent retirement option for salaried individuals. While there are other investment options, such as NPS, ULIPs and so on, most don’t even come close to matching up to PPF in terms of tax benefits and returns. Here are some reasons why it makes sense to invest in a PPF
Do we need to invest every year?
The public provident fund (PPF) scheme allows yearly investments. But it is not required to invest every year. If you can’t spare that amount each year, then don’t. The ideal thing to do is set a small percentage aside every month and keep doing so until it adds up to Rs 1,000.
What if I don’t have an emergency fund but want to start investing anyway?
Ask yourself what will happen if something does go wrong. What will happen if you lose your job, get sick, or have an emergency expense that leaves your bank account empty? Before getting started on a financial goal like saving for retirement or investing in stocks, it’s important to make sure you have cash reserves on hand to cover emergencies—and avoid going into debt. Set aside three to six months’ worth of income, then invest.
Why should I choose SmartWealth for my PPF account opening process?
SmartWealth is one of India’s leading wealth management companies, helping a wide variety of investors succeed in their financial goals. In order to cater to each individual’s needs, SmartWealth has built a wide range of investment and savings options that are both extremely flexible and customized. If you choose to open an account with us, we will gladly provide personalized advice tailored to your needs and circumstances.