PPF: Public Provident Fund i.e. PPF is a very popular small savings scheme. By investing in this scheme you can accumulate a huge fund in the long run. Due to the government scheme, there is no risk of investors drowning in it. Under Section 80C of Income Tax, tax exemption of up to Rs 1.5 lakh is given in this scheme.
At present, 7.1 percent interest is being given by the government on PPF. The biggest feature of PPF is that the amount received on maturity can be tax free. Its maturity period is 15 years. In such a situation, how can you save the returns after the maturity of PPF? Let us know.
Extend the Period of PPF
The maturity period of PPF is 15 years. But once it matures, you can easily extend its duration by about 5 years. The advantage of this will be that your amount will be reinvested again and you will get the benefit of compounding.
Debt Fund
If you want to invest in low risk mutual funds then debt funds can be a good option. You can choose a mutual fund where 65 to 75 percent of the amount is invested in debt and the rest in equity. This will also give you the benefit of the market.
Other Options
If you want to take more risk then you can also choose mutual funds. Apart from this, if your maturity amount in PPK is very high then you can also look at the option of real estate.
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