Public Provident Fund (PPF) Returns:: MRC101.html
Public Provident Fund (PPF) Returns:: MRC101.html
Public Provident Fund (PPF) Returns:: MRC101.html
Tenure for investment: 15 years from the date of initial investment with a block of 5 years there-after upto
a max of 30 years incl. 15 years.
Maturity: The PPF account matures after 15 years. One can then exercise on option of continuing the account
for an additional block of 5 years or close it.
Loan: The first loan can be taken in the 3rd financial year from the date of opening of the account, or up to 25%
of the amount at credit at the end of the first financial year. The facility can be availed of any before expiry of 5 years from the end of the year in which the initial subscription was made. The loan is repayable either in Lumpsum or in convenient instalments numbering not more than 36. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
Withdrawal: A withdrawal is permissible every year from the 7th financial year of the date of opening of the
account, of an amount not exceeding 50% of the balance at the end of the 4th proceeding year or the year immediately proceeding the year of the withdrawal, whichever is lower, less the amount of loan if any. PPF calculator: http://www.investmentkit.com/government/ppf-calculator.shtml Click on the above link to calculate PPF
Investments in PPF as well as Equity Linked Saving Schemes (ELSS) gives you tax deduction benefits. But the difference between the two is that equity tends to be the best performing asset class over a long period of time. Compared to that, if you look at PPF, it is giving you a very handsome return today, but that becomes very disappointing in relation to inflation. Any investment of this kind should be expected to beat inflation; it should be able to beat the fixed income return available. Equity can be a risky investment if you're investing for a short period of time, but with time on your side, equity is extremely rewarding.