Sir I want to invest Rs. 10000 monthly. Shall I invest in PPF or in mutual fund. I already had a ppf account which Will be maturing in 10 yrs...
Manoj Kumar
Ans: Manoj, the decision to invest in PPF (Public Provident Fund) or mutual funds depends on your investment goals, risk tolerance, and investment horizon.
PPF offers tax benefits under Section 80C of the Income Tax Act and provides guaranteed returns. However, the interest rates on PPF are subject to change and may not always beat inflation.
On the other hand, mutual funds offer the potential for higher returns over the long term but come with market risk. Equity mutual funds, in particular, have the potential for higher growth but may experience volatility in the short term.
If you're comfortable with market fluctuations and have a long-term investment horizon (typically more than 5 years), mutual funds may offer better growth potential compared to PPF. However, if you prioritize safety and tax benefits, continuing with PPF or opening a new account may be a suitable option.
Consider your financial goals, risk appetite, and liquidity needs before making a decision. It's advisable to consult with a financial advisor who can assess your situation and provide personalized advice based on your requirements.