What are the pros and cons of PPF?

Pros and Cons of PPF Scheme

• The Safest Plan. PPF is initiated by the government, so there is no possibility of someone running away with your money.
• Great Returns.
• Compound Returns.
• No Tax on Interest Earned.
• Flexible Investment.
• No tax on Maturity Amount.
• Online Maintenance.
• Free of Stock Market Influence.

What are the benefits of PPF?

What is a PPF account? What are its benefits?

• Risk-free returns as the returns are not dependent on the market volatility.
• Compounded interest rate.
• Income tax deduction u/s 80C of the Income Tax Act, 1961.
• Long-term investment for 15 years.
• Loans and advances against PPF balance.
• Low investment amount of Rs.

Is PPF good or sip?

A PPF is ideally suitable for only long term investments of 15 years or more. Thus, it is an excellent option for retirement planning, meeting your children’s education or marriage. SIP investment in a mutual fund attracts both, short term and long term capital gains tax.

What are disadvantages of PPF?

Cons of PPF

• The lock-in period is long-term, i.e., for 15 years.
• Joint accounts are not permitted, i.e., one person can only handle one account except it is of a minor.
• NRIs and HUFs cannot open an open account.
• There is a maximum limit of Rs. 1.5 lakhs laid for depositing in a PPF account.
• There is no liquidity.

What is the difference between NPs and PPF?

1. Tax Treatment of NPS vs. PPF. PPF is an EEE product. You get tax benefit for investment, interest earned is exempt from tax and the maturity amount is also tax-free. You get tax-benefit of up to Rs 1.5 lacs under Section 80C of the Income Tax Act. NPS comes under EET (almost EEE now) product basket.

What is PPF and why was it developed?

Like many of today’s modern achievements, PPF was developed to solve a problem. During the Vietnam War, the United States Department of Defense was having trouble with rotor blades on several of their helicopters being damaged by shrapnel, trees, and other debris.

What is the difference between vinyl and PPF?

Essentially, PPF is a thicker, stronger, yet lightweight material. It provides stain resistance, protection from stone chips, light scratches, bug splatter, swirl marks, and other paint damage. Vinyl is heavier, thinner, and typically colored. It can also be decorated with graphics.

Can PPF be used to buy annuities?

Under PPF, there is no such restriction. With NPS, at least 40\% of the accumulated amount must be used to purchase an annuity plan. If you exit before retirement, at least 80\% must be used to purchase an annuity plan. By the way, you can even use PPF as a pension tool.