InvestorQ : Is it wise to invest in PPF now, since rates have been slashed?
Tanu Shukla made post

Is it wise to invest in PPF now, since rates have been slashed?

Answer
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Anisha Awate answered.
5 months ago


Yes, why not?

Even though at present the PPF is supposed to fetch around 7.1% p.a for the April-June 2020 quarter but the fact that it is risk-free and tax-free still makes it an attractive option.

For example, if you’re a retiree or senior citizen, PPF shall be a good option even though the return would be lower. It will work both as a pension instrument and a risk-free tax-saving investment. Eventually, they’ll be in profit, as comparatively, returns are higher.

For young investors, this could find a place in their long-term investment portfolio and could also work as a tax-saving investment.

Therefore, even if the return for the next quarter has been slashed with immediate effect, if you consider other similar options, PPF shall be the most beneficial.