PPF is a very good option to invest, but recently people are facing a lot of problems regarding investing in PPF, if you also invest in it then definitely read this news.
Many schemes are being run by the Central Government for the benefit of the people. Through these schemes, different benefits are provided by the government to different classes of people. At the same time, many schemes are being run by the government for the savings and investment of the people. Interest can also be earned by investing in these schemes. There is also a Public Provident Fund i.e. PPF in these. There are many advantages through investment in PPF but there are some disadvantages also from this scheme. Let’s know about it…
Money will be stuck for a long time
If you are looking for short term investment then PPF is not a good option for you. Through this scheme, the maturity amount is received after 15 years. In such a situation, money will be stuck in this scheme for a long time. This scheme is not beneficial for those who do not want long term investment.
Possibility of interest rate change
Interest is also provided on the amount deposited in PPF account. However, the interest rate in this scheme is not fixed. Every three months, the interest rate of this scheme is reviewed by the Central Government and changes in the interest rate are also made if the need increases. From April 2019 to June 2019, 8 percent interest was given under this scheme. However, currently 7.1 percent interest is being given in this scheme. In such a situation, this scheme will not be beneficial for those who want more return on their investment.
Investment limit
The investment limit in PPF scheme is also fixed. Under this scheme, a maximum investment of Rs 1.5 lakh can be made in a financial year. On the other hand, if someone wants to invest more than this, then they will not be able to do so in this scheme. In such a situation, this scheme is not suitable for those who invest more than Rs 1.5 lakh in a year.
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