Investors most often prefer investment schemes that double their money while keeping their corpus safe. Since most Indians still refrain from taking investment risks, PPF has emerged as an effective alternative to fixed deposits. It comes with its own benefits:
- Building a corpus through monthly investment
- These schemes belong to the EEE category; thus, the interest income and the maturity proceeds are completely tax-free.
Why you should consider PPF investment?
While navigating through investment options, you may find that PPF is a scheme that offers the best interest rate among all other options. Any Indian citizen can now make a PPF investment and benefit from the high-interest rate. Not only that, the scheme is backed by a sovereign guarantee along with tax benefits thus making it a reliable option to save for retirement, big expenses in the future, or for creating a corpus. It comes with an average interest rate of 8% with a lock-in period of 15 years. The PPF provides the provision to keep the corpus invested for another 5 years without any contributions.
This scheme is bound to give you good returns as the interest cumulates over the investment tenure. Also, there is no risk of losing the investment amount.