Kumar Shankar Roy Updated: Apr 18, But that doesn't make PPF, the cornerstone of investment portfolio of crores of Indians, a bad choice. Personal finance experts tell DNA Money that currently, PPF is still one of the best, given its returns when compared to inflation and other competing products, its guaranteed nature of corpus, and favourable tax status.
Anyone salaried and non-salaried can open PPF account, except for non-resident Indians, and can get tax benefits on investments upto Rs 1. They also get tax benefits, and maturity amount is also exempt from tax after continuous services of five or more years," says Vishwajeet Parashar - group head, marketing, Bajaj Capital.
Investment return is not just an absolute number. It must be seen in the overall context of things. If you look at PPF's return today, it's actually at a premium to government securities, bank FDs and also inflation.
We have analysed data and come to the conclusion that PPF is giving a premium over these three parameters.
You need to take debt funds or fixed returns instruments, if you want to compare or recommend PPF as investment avenue. You can't ignore debt in overall allocation in your portfolio.
PPF is more suitable for businessman and professionals compared to the salaried class, who enjoys the benefit of EPF. Interest rates on PPF have been declining over the last couple of years in line with a fall in interest rates across the economy and other debt investment avenues including FDs, government securities, etc.
The interest rate on PPF is being aligned to government security yields and would be reset on a quarterly basis.
But the government has not slashed PPF returns. But as the economy continues to grow and develop and inflation remains at relatively lower levels, interest rates across debt instruments including PPF would move lower. Further, the current cap of Rs 1. Investors saving for long-term goals like retirement, need to consider other investment avenues like equity, which has been known to beat inflation and outperform debt investments over the longer term.
UBER RETURNS Investors generally look at PPF as an alternative to fixed deposits FDs Investment return is not just an absolute number, but must be seen in the overall context PPF rates have been declining in line with a fall in interest rates across the economy Investors saving for long-term goals need to consider other investment avenues Equity can beat inflation and outperform debt investments over the longer term.Investment decision-making – A Behavioural Approach) RESEARCH METHODOLOGY RESEARCH DESIGN: A Research design is purely and simply the framework of plan for a study that guides the collection and analysis of data.
The study is intended to find the investors preference towards various investment avenues. Investment Avenues, Bhopal, Madhya Pradesh. likes. Media/News Company.
Investment Plans Vis a Vis other investment avenues. Over a long term horizon, equity investments have given returns which far exceed those from the debt based instruments. Chapter -3 INVESTMENT AVENUES INTRODUCTION This chapter tries to bring out the various investment channels and avenues that are available to the investors.
Each investment has its own characteristic feature and the investor has to align his objectives with them. The features associated with each of the investment may relate. Mutual Fund Mutual Fund v/s Other Investment Avenues. Mutual Fund v/s Other Investment Avenues.
A. Company Fixed Deposits v/s mutual fund: A mutual fund invests in a portfolio of assets, i.e.
bonds, shares, etc. depending upon the investment objective of the scheme. The other risk is with the slowness of growth itself. What if the capital is preserved, but the growth is lesser then inflation.
Here again we are losing the value or money.