The document discusses the Public Provident Fund (PPF) scheme in India. It provides 7 key facts about PPF, including that it is a 15-year statutory scheme with high safety and tax benefits. It details features like minimum and maximum deposit limits, interest calculation, premature withdrawal rules. An example shows how Rs. 12,000 invested annually for 15 years at 8% interest can grow to Rs. 3.51 lakhs. The document recommends PPF for retirement planning and tax savings but not for young investors who can get higher returns from equities.

1. INVESTMENTS BY :-
AFTAB.MULLA 34

2. INTRODUCTION
7 MUST KNOW FACTS ABOUT PPF
FEATURES OF PPF
WHO SHOULD INVEST & WHO SHOULD NOT INVEST
PPF UPDATED AS PER NEW RULES
ADVANTAGES OF PPF
DISADVANTAGES OF PPF
RECOMMENDATION

3. STATURORY SCHEME OF THE CENTRAL
GOVERNMENT OF INDIA
THE SCHEME IS FOR 15 YEARS
LONG TERM INVESTMENT OPTION THAT SUITS ALL
INVESTORS
HIGH ON SAFETY
COMES WITH TAX BENEFITS,LOAN OPTIONS AND A
LOW MAINTENANCE COST

4. IT REQUIRES JUST Rs. 100 TO START A PPF A/C
PPF A/C HAVE A MINIMUM & MAXIMUM DEPOSIT LIMIT
INTREST CALCULATION IN PPF A/C
PREMATURE WITHDRAWAL FROM PPF
PPF OFFERS MULTIPLE TAX BENEFITS
NEED A LOAN? USE YOUR PPF
CONTINUING PPF AFTER THE 15 YEAR PERIOD

5. Here is an example to demonstrate the returns
on your PPF. The assumed interest rate is 8%
(compounded annually) and the investment is
12000/- Rupees per year for 15 years.

6. Opening Total Closing Withdrawal Loan
Yrs. Investment Interest
Balance Investment Balance Limit Possible
1 0 12,000 12,000 960 12,960 – –
2 12,960 12,000 24,960 1,997 26,957 – –
3 26,957 12,000 38,957 3,117 42,073 – 3,240
4 42,073 12,000 54,073 4,326 58,399 – 6,739
5 58,399 12,000 70,399 5,632 76,031 – 10,518
6 76,031 12,000 88,031 7,042 95,074 – –
7 95,074 12,000 107,074 8,566 115,640 29,200 –
8 115,640 12,000 127,640 10,211 137,851 38,016 –
9 137,851 12,000 149,851 11,988 161,839 47,537 –
10 161,839 12,000 173,839 13,907 187,746 57,820 –
11 187,746 12,000 199,746 15,980 215,726 68,925 –
12 215,726 12,000 227,726 18,218 245,944 80,919 –
13 245,944 12,000 257,944 20,635 278,579 93,873 –

7. As you can see, an investment of 12000 /-
Rupees per year for 15 years has grown into
3, 51,891 /- Rupees (1, 80,000 Rupees was the
total amount invested and the rest is interest
accrued.)

9. YOU SHOULD CONSIDER INVESTING IN PPF
IF :-
YOU WANT A STABLE CORPUS FOR RETIREMENT AND
ARE RISK-AVERSE i.e. DON’T WANT TO INVEST IN
EQUITY
YOU WANT TAX EXEMPTIONS UNDER SECTION 80C
YOU ARE A NON-SALARIED/BUSINESS PERSON

10. PPF IS PROBABNLY NOT FOR YOU IF YOU
ARE :-
IF YOU ARE YOUNG YOU SHOULD INVEST IN EQUITIES. IN
THE LONG RUN, RETURNS FROM EQUITIES BEAT
EVERYTHING
YOU ARE NOT ELIGIBLE FOR TAXATION. (YOU WON’T NEED
THE TAX BENEFITS)

11. INTEREST 8.6% p.a. (COUMOUNDED ANNUALLY)
MIN AMOUNT : RS.5OO & ADDITIONAL INVESTMENT IN MULTIPLES OF
Rs.5. MAXIMUM Rs.1,00,000
A PPF A/C CAN BE OPENED ANYTIME THROUGH OUT THE YEAR
NOMINATION CAN BE DONE AT THE TIME OF OPENING THE A/C OR
DURING THE TENOR OF THE ACCOUNT
ADDITIONAL BLOCK OF 5 YRS CAN BE EXCERCISED AFTER MATURITY (15
YRS) ALSO

12. FIRST LOAN CAN BE TAKEN IN THE 3RD FINANCIAL YEAR FROM
THE DATE OF OPENING THE A/C
LOAN TAKEN BY THE SUBSCRIBER OF PPF A/C AFTER 01.12.2011
WILL B CHARGED 2% p.a. {PREVIOUSLY 1% p.a.}
TAX BENEFIT CAN BE AVAILED UNDER SECTION 88
THE A/C CAN BE TRANSFERRED ON REQUEST (INCLUDING BANK
TO POST OFFICE)
NON-RESIDENT CANALSO OPEN PPF A/C IN BANKS{NON-
RESIDENT ACCOUNT}

15. EXCELLENT WAY TO GET TAX EXEMPTIONS {UNDER SECTION
80C}
INTEREST RATE IS HIGH COMPARED TO OTHER DEBT
INSTRUMENTS LIKE FIXED DEPOSITS {BECAUSE THE INTREST
EARNED BY YOU WILL BE TAX FREE}
NEGLIGIBLE RISK OF DEFAULT {BACKED BY GOVT. OF INDIA}
EXCELLENT TOOL FOR RETIREMENT PLANNING {ESPECIALLY
FOR NON-SALARIED PERSON}

16. www.investmentguru.com
www.wikipedia.com
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