PPF Account Maturity: If you want to utilize your PPF money in a different way, you can do that also. You can take such steps which will increase your money and bring more benefits.
PPF Account Maturity: Public Provident Fund i.e. PPF account is considered to be one of the best schemes for retirement fund. If you want to make long term savings and want a tax saving scheme then PPF can be best for you. On this you can save Rs 1.5 lakh annually under Section 80C of the Income Tax Act. On this you also get the facility of partial withdrawal.
Rules for investing in PPF
You can invest up to Rs 1.5 lakh annually, whether in lump sum or in several installments, you have to invest at least Rs 500 in this account in a year. You get an annual return of 7.1 percent on your funds. This account comes with a maturity of 15 years. In this you have to invest for at least 15 years, but the good thing is that if you want, you can extend it further also. But if 15 years maturity is enough for you and you want to utilize your PPF funds in a different way beyond this, then you can do that too. You can take such steps which will increase your money and bring more benefits.
How will the fund grow further?
There are some ways of this-
1. Get your tenure extended
You can either extend your fund for another five years. If you want to invest money in it, then you will have to tell your bank/post office within one year of maturity that you want to extend it. If you want to extend without making deposit, you can also do so. You do not need to make any further contribution, you will continue to earn interest on top of that. In this way, you will keep earning returns on the fund without investing any money. Not only this, the amount you withdraw from your PF account every year will also be tax free.
2. Invest the funds elsewhere
Whatever you have earned from investing for 15 years, you can earn more returns by investing it somewhere else. For this you will have to close your account by filling the closure form. After 15 years you are going to get a good amount of money, if you do not need it then it can be invested somewhere better. What could be a better option for you?
1. Real Estate
Depending on your amount, whether you can invest in an investment avenue like a property, farm or flat or not. You can also invest in real estate by adding some more amount to it.
2. Debt Funds
If you want to take low or moderate risk then you can invest in debt funds. Debt oriented hybrid mutual funds park 65-75 per cent of their assets in debt funds.
3. Balanced Advantage Funds
If you also want to take high risk, then you can choose dynamic funds, in which your money is allocated between debt and equity according to the market valuation. If you invest money for a long time, you can easily get returns of up to 11-12%.
