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The Public Provident Fund (PPF) is a government-backed savings scheme for individuals in India. It offers a relatively low-risk investment option with tax benefits and a long-term investment horizon of 15 years.
Under the PPF scheme, individuals can make a minimum annual contribution of INR 500 and a maximum of INR 1.5 lakh. The contributions earn interest at a rate determined by the government, and the interest is compounded annually. The interest earned on PPF contributions is exempt from tax.
One of the key benefits of the PPF is its long-term investment horizon, which allows individuals to save for their retirement. Additionally, the PPF offers a high degree of safety, as it is backed by the government of India.
Withdrawals from the PPF are allowed after the completion of 15 years, and partial withdrawals are allowed after the completion of 7 years. The accumulated balance can also be used as collateral for loans.
Overall, the PPF is a good option for individuals who are looking for a long-term, low-risk investment option with tax benefits. However, it's important to consider your personal financial goals and risk tolerance when deciding whether the PPF is the right option for you.
Posted : 09/02/2023 12:42 pm