Two famous investment options are PPF (Public Provident Fund) and Mutual Funds. Both these investment choices have their own sets of differences.
A public provident fund (PPF) is a long-term investment option, and it is backed by the Indian Government. PPF offers guaranteed returns to investors. This rate of interest is set by the Indian Government every quarter. It has a fixed investment period, with the minimum amount of investment per year as Rs. 500 and a maximum of Rs 1.5 lakh for each financial year. The principal amount, the interest earned and the maturity amount of PPF is completely tax-free. PPF has a lock-in period of 15 years, in some cases premature withdrawals are possible only from the 7th year of making the investment. PPF is a low-risk investment option.
Mutual funds -
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