Public Provident Fund or PPF is one of the best and most popular debt instruments available to us. However, it does not mean it is risk-free. What are the risks of investing in a Public Provident Fund or PPF?
No asset class on this earth is completely risk-free. In one way or another way, they carry a certain amount of risks. Only nature or colour may change. Hence, understanding the risks of investing in a Public Provident Fund is most important.
Before proceeding further, let us recap the features of the Public Provident Fund.
Features of Public Provident Fund or PPF
Who can open it?
(i) a single adult by a resident Indian.
(ii) a guardian on behalf of a minor/ person of unsound mind. ?
Note:- Only one account can be opened all across the country either in the Post Office or any Bank.
How much to deposit?
(i) Minimum deposit of Rs. 500 in a Financial Year and Maximum deposit is Rs. 1.50 lakh in an FY
(ii) Maximum limit of Rs. 1.50 lakh shall be inclusive of the deposits made in his/her…