ap7am logo
Logo Bar bseindia nse-india msn yahoo youtube facebook google thehindu bbc ndtv v6 ABN NTv Tv9 etv namasthetelangaana sakshi andhrajyothy eenadu ap7am bhakti espncricinfo wikipedia twitter

PPF still attractive!

Thu, May 12, 2016, 10:41 AM
Related Image

After the Government of India decreased the rate of interest on Public Provident Fund (PPF) from 8.7 percent to 8.1, all those persons who put hopes in it were shocked. This scheme is, however, beneficial for all salaried persons for getting tax exemption and getting more income in a long term of 15 years. After the new rate of interest came into force from April 1 this year, several persons have a big doubt on whether investing in the PPF is still beneficial or not. Too many investors are now doubting the PPF.    

The PPF is a scheme run by the Central government and so there will be a security on the returns made here. The term of the scheme is 15 years. If needed, it can be extended to another five years. It is an excellent scheme for providing a fund for future purposes. This scheme is beneficial for getting money for higher education of children, marriage and for those who want to buy home in future. It also helps retired persons to have some fund for themselves.

Too many benefits

Considering the opinion of experts, the PPF is still more attractive than other schemes due to tax benefits and rate of interest. In this scheme, the rate of interest is 8.1 percent and the inflation rate is 5 percent. It means there is a profit of 3 percent. On the other hand, the rate of interest on bank deposits came down to below 8 percent. If we look at the income after tax, the rate of interest on bank deposits is below 6 percent. What will remain if we deduct inflation?

Comparing other benefits...

As the government decreased the rate of interest on several savings schemes, the interest rate on PPF is still more than all those schemes. The experts are saying that the PPF is one scheme which can give some returns in the long run withstanding the fluctuations of inflation. Complete tax exemption is there on the investments in PPF and the returns after expiry of the term.

The expert advice is that these kinds of schemes are the best alternative for those persons who feel that investments in stock market is a risky thing. The PPF can be considered by those persons, who invest in stock markets directly and also in mutual funds schemes, to decrease risk and to balance the investments.


X

Feedback Form

Your IP address: 54.162.232.51
6 months ago
1 year ago
What can Akun Sabharwal do if I consume Drugs : Raghunanda..
What can Akun Sabharwal do if I consume Drugs : Raghunandan Rao
Tollywood Drugs : Subbaraju Interrogation Still Continues,..
Tollywood Drugs : Subbaraju Interrogation Still Continues, might Shake Tollywood
Actor Sivaji Raja Open Heart with RK - Promo..
Actor Sivaji Raja Open Heart with RK - Promo
Drugs Scandal - Face to face with Akun Sabarwal - Exclusiv..
Drugs Scandal - Face to face with Akun Sabarwal - Exclusive
Watch How Devineni Uma is Warning Contractors..
Watch How Devineni Uma is Warning Contractors
Watch: Reliance Jio Phone, Price, Specifications, Features..
Watch: Reliance Jio Phone, Price, Specifications, Features, and More
Watch: Mukesh Ambani's vanity van: The mobile luxurious pa..
Watch: Mukesh Ambani's vanity van: The mobile luxurious palace
Raja Neeti : Mega Star Chiranjeevi Strategy on Jana Sena P..
Raja Neeti : Mega Star Chiranjeevi Strategy on Jana Sena Party
Drugs Scandal - Subbaraju's interrogation not complete..
Drugs Scandal - Subbaraju's interrogation not complete
Akun Sabharwal speaks to Media over Celebrities Investigat..
Akun Sabharwal speaks to Media over Celebrities Investigation
Who is Doing Body Massage to Puri for last 15 years ?..
Who is Doing Body Massage to Puri for last 15 years ?
Actress Taapsee Pannu Exclusive Interview..
Actress Taapsee Pannu Exclusive Interview
AP DGP Sambasiva Rao on YS Jagan Padayatra..
AP DGP Sambasiva Rao on YS Jagan Padayatra
Dr Jayaprakash Narayan on Why China is after India..
Dr Jayaprakash Narayan on Why China is after India
Ashwini Datt Comments on CM KCR, Tollywood Stars Behaviour..
Ashwini Datt Comments on CM KCR, Tollywood Stars Behaviour
Drugs Scandal - Actor Subbaraju's interrogation ends..
Drugs Scandal - Actor Subbaraju's interrogation ends
Fidaa Movie Review & Rating..
Fidaa Movie Review & Rating
Drugs scandal: SIT divides Tollywood stars in to Puri, Tar..
Drugs scandal: SIT divides Tollywood stars in to Puri, Tarun groups
Nara Lokesh inaugurates Care Software Company in Mangalagi..
Nara Lokesh inaugurates Care Software Company in Mangalagiri
Mukesh Ambani announces free 4G VoLTE-ready feature phones..
Mukesh Ambani announces free 4G VoLTE-ready feature phones for Jio users