Investment Schedule: Everyone invests in the present for their future. By the way, there are many types of investment schemes. One of these is the Public Provident Fund Scheme (PPF). People rely on PPF. At present, many people are investing money in this scheme. However, people who invest should be aware of a few things. If you do not have information now, many problems can arise in such a situation.
Tax exemption via PPF Investment scheme
Let us tell you that the Government Supply Scheme is a good scheme for saving tax. It is a long-term investment plan. Guaranteed interest is available in this scheme. You can claim a tax deduction of up to Rs 1.5 lakh annually under Section 80C of the Income Tax Act.
Disadvantages of PPF Investment Scheme
Let’s tell you that the PPF scheme currently offers an interest rate of 7.1 percent. Although there are many advantages to this, there are also one and a half disadvantages. These half-losses can’t stay that way. It is very important to pay attention to them.
interest rate change
The interest rate in the PPF scheme affects the term amount. It must be seen that interest rates keep changing from time to time.
The term of this scheme is 15 years. If you do not want to invest money in a scheme for a long period of time, this scheme is not suitable for you.
Interest is only available on the minimum amount
The interest in PPF is calculated on the lowest amount between the 5th and the last day of the month. For example, if you have Rs 20,000 in your PPF account and you invest Rs 2,000 more after the 5th of the month, the interest will be charged on Rs 20,000 and not Rs 22,000.
Apart from this, money stays in it for a long time. It is not like mutual funds and stocks.