Should PPF Be A Part Of Your Investment Portfolio?
Dalal Street Investment Journal|May 23, 2022
Public Provident Fund (PPF) is one of the most preferred investment avenues by individuals looking for a long-term tax saving instrument with low risk to park their hard-earned money. Let us look at what makes PPF so popular while also taking a look at Equity Linked Savings Scheme (ELSS)
Should PPF Be A Part Of Your Investment Portfolio?

It is not for any small reason that Public Provident Fund (PPF) has gained so much appreciation amongst investors. Compared to many of the other tax-saving investment options, PPF is considered a topper in terms of both, safety and returns. Here are some of the advantages in its favour:

Triple Exemption Status

PPF enjoys the benefit of triple tax exemptions i.e. the exempt-exempt-exempt (EEE) status. This means that you get tax exemption at the time of investment, accrual and withdrawal. One can avail deduction of up to ₹1.5 lakhs on investment made in each financial year under Section 80C of the Income Tax Act, 1961. Moreover, the interest earned on the investment is also exempt from taxation. Even the accumulated corpus which you withdraw on maturity is tax-exempt, thus making it a totally tax-free income.

Respectable Post-Tax Rate of Return

PPF, unlike Employees Provident Fund (EPF), is open to those not eligible for EPF. The interest rate on PPF as on March 2022 was 7.1 per cent, which is higher than other small savings schemes like the National Savings Certificate (NSC) that offers 6.8 per cent or the India Post Office's five-year time deposit that offers 6.7 per cent. Moreover, the other saving schemes don't offer EEE status and hence their interest rates are pre-tax.

Beneficial Floating Rates

Esta historia es de la edición May 23, 2022 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición May 23, 2022 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE DALAL STREET INVESTMENT JOURNALVer todo
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 minutos  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 minutos  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 minutos  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 minutos  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 minutos  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 minutos  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 minutos  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 minutos  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 minutos  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 minutos  |
July 29, 2024