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How important is PPF as an Investment?

Update: The world has changed in the last few months. COVID-19 has made us reconsider our options. We need security as well as growth when it comes to our personal finance.  However, has that changed how we allocate our surplus funds? Has PPF as an investment become more attractive?

In my view, Yes. However, asset allocation has become even more important now. Invest a part of your income in the following categories:

  • Emergency Fund – Bank FD
  • Long term Secure Investment – PPF and Post Office Savings scheme
  • Long Term Investment – Index Mutual Fund and Equity
  • Short Term Investment – Bank FD and Liquid Mutual Funds
  • Real Estate

Recently, I came across this thread of comments on Quora.

What perturbed me the most is the advice itself. How can you advise a young 22-year-old person to invest in PPF without investing anything in Equities or Mutual Funds?

There is a lot of free advice out there but is not always the best one. PPF is a good investment option if you are only looking for the security of your funds. It is not a good one if you want to grow your money or become rich.

Please have a look at this article if you really want to understand the pros and cons of investing in PPF.

PPF Investment advise on Quora
PPF Investment advise on Quora

Pic Credits: https://www.paisabazaar.com/financial-planning/articles/14874-all-you-need-to-know-about-ppf/

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