"For A Secured & Wealthier Tomorrow..."

February 2018

Best ELSS Mutual Funds To Invest In 2018
On the basis of various aspects like their past performances, trailing returns, AUM, Crisil ranking, Value Research rating, return since inception etc. I have picked Top 5 Equity Large Cap Funds to start your SIP/Lumpsum investment in this year 2018.

Here is the list:

TOP 5 BEST ELSS MUTUAL FUNDS FOR 2018: 

1.  Principal Tax Savings Fund
  • Launch Date: 31st March 1996
  • Crisil Rating: Rank-1
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 28.87% | 3 Year - 15.71% | 5 Year - 20.89%
  • Return Since Inception: 17.35%
  • AUM: Rs 398 crore (As on Jan 31, 2018)
2.  Aditya Birla Sunlife Tax Relief 96
  • Launch Date: 29th March 1996
  • Crisil Rating: Rank-2
  • Value Research Rating: 5-Star
  • Fund Performance: 1 Year - 27.83% | 3 Year - 14.28% | 5 Year - 21.74%
  • Return Since Inception: 25.69%
  • AUM: Rs 4,949 crore (As on Jan 31, 2018)
3.  Aditya Birla Sunlife Tax Plan
  • Launch Date: 16th February 1999
  • Crisil Rating: Rank-2
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 27.49% | 3 Year - 13.69% | 5 Year - 20.97%
  • Return Since Inception: 20.68%
  • AUM: Rs 695 crore (As on Jan 31, 2018)
4.  Tata India Tax Savings Fund
  • Launch Date: 31st March 1996
  • Crisil Rating: Rank-2
  • Value Research Rating: 5-Star
  • Fund Performance: 1 Year - 24.49% | 3 Year - 15.50% | 5 Year - 20.84%
  • Return Since Inception: 20.09%
  • AUM: Rs 1,188 crore (As on Jan 31, 2018)
5.   DSP BlackRock Tax Saver Fund
  • Launch Date: 18th January 2007
  • Crisil Rating: Rank-3
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 18.42% | 3 Year - 14.35% | 5 Year - 20.29%
  • Return Since Inception: 14.94%
  • AUM: Rs 3,983 crore (As on Jan 31, 2018)

Best Large Cap Mutual Funds To Invest In 2018

On the basis of various aspects like their past performances, trailing returns, AUM, Crisil ranking, Value Research rating, return since inception etc. I have picked Top 5 Equity Large Cap Funds to start your SIP/Lumpsum investment in this year 2018.

Here is the list:

TOP 5 BEST EQUITY LARGE CAP MUTUAL FUNDS FOR 2018: 


1. Kotak Select Focus Fund
  • Launch Date: 11th September 2009
  • Crisil Rating: Rank-1
  • Value Research Rating: 5 Star
  • Fund Performance: 1 Year - 18.49% | 3 Year - 12.83% | 5 Year - 20.37%
  • Return Since Inception: 15.08%
  • AUM: Rs. 17,843 crore (As on Jan 31, 2018)
2. Reliance Top 200 Fund
  • Launch Date: 08th August 2007
  • Crisil Rating: Rank-1
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 25.27% | 3 Year - 11.32% | 5 Year - 18.14%
  • Return Since Inception: 12.00%
  • AUM: Rs. 8,109 crore (As on Jan 31, 2018)
3. HDFC Growth Fund
  • Launch Date: 11th September 2000
  • Crisil Rating: Rank-2
  • Value Research Rating: 3-Star
  • Fund Performance: 1 Year - 22.72% | 3 Year - 12.51% | 5 Year - 14.93%
  • Return Since Inception: 18.31%
  • AUM: Rs. 1,230 crore (As on Jan 31, 2018)
4. SBI Bluechip Fund
  • Launch Date: 14th February 2006
  • Crisil Rating: Rank-3
  • Value Research Rating: 5-Star
  • Fund Performance: 1 Year - 16.87% | 3 Year - 11.35% | 5 Year - 17.75%
  • Return Since Inception: 11.68%
  • AUM: Rs. 17,869 crore (As on Dec 31, 2017)
5. Aditya Birla Sunlife Frontline Equity Fund
  • Launch Date: 30th August 2002
  • Crisil Rating: Rank-3
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 17.08% | 3 Year - 10.05% | 5 Year - 16.87%
  • Return Since Inception: 22.01%
  • AUM: Rs. 20,531 crore (As on Jan 31, 2018)

Best Mid Cap Mutual Funds To Invest In 2018

On the basis of various aspects like their past performances, trailing returns, AUM, Crisil ranking, Value Research rating, return since inception etc. I have picked Top 5 Equity Mid Cap Funds to start your SIP/Lumpsum investment in this year 2018.

Here is the list:

TOP 5 BEST EQUITY MID CAP MUTUAL FUNDS FOR 2018: 

 Mirae Asset Emerging Bluechip Fund
  • Launch Date: 09th July 2010
  • Crisil Rating: Rank-2
  • Value Research Rating: 5-Star
  • Fund Performance: 1 Year - 25.06% | 3 Year - 20.94% | 5 Year - 29.91%
  • Return Since Inception: 23.56%
  • AUM: Rs 5,302 crore (As on Jan 31, 2018)
2. L&T Midcap Fund
  • Launch Date: 09th August 2004
  • Crisil Rating: Rank-2
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 29.71% | 3 Year - 20.37% | 5 Year - 28.72%
  • Return Since Inception: 21.83%
  • AUM: Rs 2,222 crore (As on Jan 31, 2018)
3. Aditya Birla Sunlife Pure Value Fund
  • Launch Date: 27th March 2008
  • Crisil Rating: Rank-2
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 31.95% | 3 Year - 20.19% | 5 Year - 29.65%
  • Return Since Inception: 20.82%
  • AUM: Rs 3,079 crore (As on Jan 31, 2018)
4. SBI Magnum Midcap Fund
  • Launch Date: 29th March 2005
  • Crisil Rating: Rank-4
  • Value Research Rating: 3-Star
  • Fund Performance: 1 Year - 13.53% | 3 Year - 14.94% | 5 Year - 25.27%
  • Return Since Inception: 17.61%
  • AUM: Rs 4,233 crore (As on Dec 31, 2017)
5. DSP BlackRock Small & Midcap Fund
  • Launch Date: 14th November 2006
  • Crisil Rating: Rank-3
  • Value Research Rating: 3-Star
  • Fund Performance: 1 Year - 17.28% | 3 Year - 17.30% | 5 Year - 24.10%
  • Return Since Inception: 16.43%
  • AUM: Rs 5,414 crore (As on Jan 31, 2018)

Best Small Cap Mutual Funds To Invest In 2018

On the basis of various aspects like their past performances, trailing returns, AUM, Crisil ranking, Value Research rating, return since inception etc. I have picked Top 5 Equity Small Cap Funds to start your SIP/Lumpsum investment in this year 2018.

Here is the list:

TOP 5 BEST EQUITY SMALL CAP MUTUAL FUNDS FOR 2018: 

1. Reliance Small Cap Fund
  • Launch Date: 16th September 2010
  • Crisil Rating: Rank-1
  • Value Research Rating: 3-Star
  • Fund Performance: 1 Year - 42.62% | 3 Year - 24.09% | 5 Year - 35.40%
  • Return Since Inception: 22.95%
  • AUM: Rs 6,542 crore (As on Jan 31, 2018)
2. L&T Emerging Businesses Fund
  • Launch Date: 12th May 2014
  • Crisil Rating: Rank-1
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 39.88% | 3 Year - 25.97% | 5 Year - Waiting
  • Return Since Inception: 31.43%
  • AUM: Rs 4,031 crore (As on Jan 31, 2018)
3. HDFC Small Cap Fund
  • Launch Date: 03rd April 2008
  • Crisil Rating: Rank-1
  • Value Research Rating: 2-Star
  • Fund Performance: 1 Year - 44.41% | 3 Year - 22.17% | 5 Year - 23.81%
  • Return Since Inception: 16.59%
  • AUM: Rs 2,423 crore (As on Jan 31, 2018)
4. DSP BlackRock Micro Cap Fund
  • Launch Date: 14th June 2007
  • Crisil Rating: Rank-2
  • Value Research Rating: 3-Star
  • Fund Performance: 1 Year - 20.80% | 3 Year - 22.27% | 5 Year - 32.30%
  • Return Since Inception: 19.48%
  • AUM: Rs 6,469 crore (As on Jan 31, 2018)
5. Franklin India Smaller Companies Fund
  • Launch Date: 13th January 2006
  • Crisil Rating: Rank-3
  • Value Research Rating: 4-Star
  • Fund Performance: 1 Year - 24.34% | 3 Year - 18.33% | 5 Year - 29.35%
  • Return Since Inception: 16.11%
  • AUM: Rs 7,497 crore (As on Dec 31, 2017)

What Is PNB Scam?


India has currently seen the bank fraud/scam which is the biggest ever scam in the history of India in banking sector.

Let's have a overlook on what this scam is all about and how it was executed!

The master minds behind this whole scam of Rs. 11,500 Crore are the diamond merchants Nirav Modi and Mehul Choksi. 

Here’s a basic list of questions and answers on the alleged crime.

Who is Nirav Modi?

Nirav Modi is the founder of Nirav Modi global diamond jewelry house established in 2010. Nirav Modi was the first Indian jeweler to have been featured on the covers of Christie’s and Sotheby’s Catalogues. The company has its headquarters in Mumbai, India.

In 2008, a close friend asked Nirav Modi to make a pair of earrings after which he created the brand. Then after he never had to looked back. He is sometimes compared with Laurence Graff who had also created a brand name in the high end diamond market.

Who is Mehul Choksi?

Mehul Choksi is the 58 years old maternal uncle of Nirav Modi and he is the chairman and managing director of Gitanjali Gems.

When did the fraud take place?

Between 2011 and at least 2017. It was detected in the third week of January 2018, according to the PNB management which approached the Central Bureau of Investigation on 29th January 2018.

How was it carried out?

In 2011, ​i​t began with a a much smaller amount with a single letter of undertaking (LoU)​ worth around Rs 800 crore.

What is a letter of undertaking?

It is a guarantee that a bank is obliged to repay the loan if the actual borrower Nirav Modi in this case fails. 

So, were the loans approved by PNB?

The first LoU was issued by two PNB employees on behalf of the bank via SWIFT, sanctioning loans to be disbursed abroad.

What is SWIFT?

Society of Worldwide Interbank Financial Telecommunication, or SWIFT, is a system to send instant messages. Once a foreign bank or a foreign branch of a bank gets the LoU via the SWIFT message, it disburses the loan to the borrower.

Where did it go wrong?

When the credit due was not paid in time, more LoUs were issued on behalf of PNB to offset the payment​.

What is “offsetting the payment”?

When the borrower did not repay the first Rs 800 crore, the bank ought to have stepped in and booked a default by the group company. Instead, the two PNB employees, who were allegedly party to the fraud, issued more LoUs on behalf of PNB, asking other banks to give out fresh loans to the firms. This continued until two weeks before the whole operation came to light after some of Modi’s employees visited the bank on Jan. 05. The management was caught napping and the overdue loans exceeded Rs 11,000 crore.

Are we sure the fraud did not exceed Rs 11,000 crore?

“I don’t think so, but we will know after the investigation,” PNB managing director and CEO Sunil Mehta said on Feb. 15. If the probe reveals that the amount exceeded the current estimate, the bank’s liability may increase. “Gross exposure is significantly higher at $1.8 billion, though, at this juncture, it will be difficult to ascertain the financial impact across the banking system as investigations are on,” Edelweiss Research said in a note on Feb.15.

How did the management miss a colossal fraud like this for so many years?

PNB sources say the bank isn’t fully integrated on a ​​Core Banking System (CBS) which could have immediately detected the discrepancy.

What is a CBS?

Gartner defines CBS as a back-end system that processes daily banking transactions, posting updates to accounts and other financial records. It is a centralised software that keeps all records across branches and is capable of generating alerts over any undue activity.

So, India’s second-largest government bank didn’t buy good software?

According to sources, PNB’s integration to a CBS was initiated in 2002. The technology took a decade to become developed. It should have been upgraded by 2012, but wasn’t. It is getting updated now.

Is PNB the only bank without proper CBS?

“Public sector banks continue to grapple with weak systems, raising questions on why the processes are not centralised, unlike most private banks where bypassing CBS is not easy,” Edelweiss said. It added that “the liability on respective banks depends on the investigation’s outcome. Even Bank of India, in the third quarter of financial year 2018, reported stress of Rs 9,400 crore pertaining to stand-by letter of credits discounted by its overseas branches.”

So, without good software, the two employees were able to game the system?

Yes, the two individuals apparently colluded with the borrower to wrongfully sanction fresh loans via SWIFT. ​

Shouldn’t banks have other ways of keeping track?

SWIFT transactions are supposed to be regularly reviewed. PNB sources say there is a system to check SWIFT transactions daily by the manager and a concurrent auditor within the branch,​ a norm that was not followed. “We have an internal rule wherein officials are rotated within departments, ideally every few months. But the two accused were in the same role in the same branch for seven years. ​The moot point is, we are at a loss to find out now. So many managers changed, so many auditors and inspectors came and went. How did they bypass everybody?” a PNB official said, requesting anonymity.

Is it the first time that such a fraud had occurred?

No. A bunch of Indian banks faced massive losses due to unpaid loans from Winsome Diamonds, which defaulted for the first time in 2013. The loans given to Winsome, and its associate entity Forever Diamonds, were through similar SWIFT route. However, both Winsome and Forever failed to repay, citing default by customers. The Serious Fraud Investigation Office is probing the case.

Is it possible there were more PNB employees involved?

It is too soon to say. The management has assured investors that it will undertake a forensic audit and look into loans approved under earlier managements, if needed.

Which are the other banks that lent money to Nirav Modi and Mehul Choksi’s firms?

According to sources, Allahabad Bank has the largest exposure of ​over Rs 4,000 crore. Union Bank has anywhere between Rs 1,000 crore and Rs 2,000 crore, and the State Bank of India about Rs 1,000 crore. Axis Bank has over Rs 2,000 crore, though it has already sold off those loans.

What will be the impact of the Rs 11,000 crore (or bigger) fraud?

Loss of public faith in PNB and other state-owned banks will be the biggest risk. According to RBI regulations, PNB will have to repay other banks the money owed by the firms. PNB sharesholders may see their wealth eroding further as the Rs 11,300 crore liability is more than a third of the bank’s market value. The pain will only increase if the probe reveals a bigger scam. This is besides the taxpayer money that will be lost in litigation and getting Modi and Choksi extradited.

Who will pay for the losses?

Reports say that RBI has instructed PNB to pay other banks for the loans disbursed to Modi and Choksi. Other banks will have to set aside money from their profits till the time PNB coughs up the money, and when it does pay up, PNB’s books will then have to show the amount as loss.

Have Modi and Choksi offered to repay?

The PNB CEO said Modi sent an email seeking time to repay, and the management, in turn, has sought a detailed repayment plan.

Where are Modi and Choksi?

Some reports suggests that Nirav Modi may be in New York.

Like this post? Share it with your friends!

10 Reasons You Need To Buy Life Insurance


Today, the biggest Myth among Youth of India is - Life Insurance is something you need to think about when you get old!

Buying life insurance is one of the most important and basic financial decisions, but believe it or not, only 10% of Indians are insured! 

Why is it so important? 

Well, regardless of how much you earn, no one knows what the future holds. Lots of people die prematurely every year from illness or due to various different accidents and, if you happen to be the sole bread earner in your family and you were to pass away, it could have devastating consequences for your loved ones their ability to pay household expenses, debts and maintain their standard of living.

The least you can do, therefore, is to secure your family's financial future by buying a life insurance policy. Besides, do not overlook benefits of a life insurance during your lifetime, especially if you are young. 

Here, I have listed 10 very genuine and important reasons for buying a life insurance policy.

LOOKING AFTER YOUR LOVED ONES IN YOUR ABSENCE

This is the most important factor of life insurance that one needs to consider first. Your family is dependent on you even after you're gone and you certainly don't want to let them down. Whether it's for replacing lost income, paying for your child's education or making sure your spouse get the much-needed financial security, life insurance could save the day for your surviving dependents.

DEALING WITH DEBT

You don't want your family to deal with financial liabilities during a crisis in your absence. Any outstanding debt which can be your home loan, auto loan, personal loan, or a loan on credit cards will be taken care of if you happen to buy the right life insurance policy at right time.

HELPS ACHIEVING LONG-TERM GOALS

Life Insurance is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals also such as buying a home, child's marriage, child's foreign education or planning your own retirement. It also provides you with diverse investment options that come along with different types of policies.

Some policies are tied to certain investment products that pay dividends based on their performance. If you are opting for an investment-linked policy (ULIPs), be sure to read the fine print to be fully aware of the potential risks and returns.

LIFE INSURANCE FOR RETIREMENT

Who wouldn't like to enjoy his/her retirement tension free? Yes, With a life insurance plan, you can ensure you have a regular flow of income every month. Putting money in an annuity is like a pension plan put in some money regularly in a life insurance product and enjoy a steady income every month even after your retirement.

BUY IT WHEN YOU'RE YOUNGER

Not everyone needs a life insurance policy. If you don't have any dependents or you're still living off your parents' money, insurance shouldn't be your priority.

However, if you have dependents or you have co-signed a loan with your parents (or any other member of your family or friend), whether it be a student loan or a home loan, you need to start considering buying a life insurance policy. Besides, coverage costs are very much lower when you're single.

Therefore, approach a financial planner today itself to determine how much insurance you need considering the other assets you may own. Even if you're single, there may be other dependents and you need to ensure they're taken care of. 


The earlier the better. 

For instance, single people provide financial support for ageing parents or a sibling with special needs. Insurability is another reason to consider life insurance when you're single. If you're young, healthy and have a good family health history, your insurability is at its peak, and you can get the best rates on your life insurance policy.

YOUR BUSINESS IS ALSO TAKEN CARE OF

Life insurance isn't only for yourself and your family. Some insurance policies also take care of your business. If you own a business, then your business partner can purchase your portion of the business without hassle. Your business partner(s) will enter a buy-sell agreement and the payout would go to the deceased partner's nominees, but without giving them a stake in the company. There are two types of life insurance policies-a term insurance policy and a life insurance policy.

While we are all aware of the death benefits these insurance policies provide, we know little about the various options they lay out that could help strengthen your financial position.

A term insurance provides protection for a specified period of time (10, 20 or 30 years) and pays out the benefits only if you die during the term. The policy will expire and coverage will end after completion of the policy terms you chose. 

Onbthe other hand, an investment-cum-protection plan offers you a lump sum amount on the completion of the term of the policy. These plans also offer you protection but the cover is usually not as high as offered with term plans.

TAX-SAVING

Yes, You can save taxes with insurance policies irrespective of what plan you buy. The premium you pay on an insurance policy is eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for tax-free proceeds on death/maturity under Section 10(D) of the Income Tax Act, 1961.

TOOL FOR FORCED AND COMPULSORY SAVINGS 

If you are unable to save a single paise every month for your financial  future consider life insurance as your  future asset. After buying it, you will have to compulsorily save and invest your money in Insurance plan for long term  which will pay you off various benefits in the coming future.

YOU MAY NOT BE QUALIFIED FOR IT LATER 

Life insurance policies run on uncertainties. You may be healthy today and paying a premium for life insurance may seem to be an added financial burden, but if you suddenly fall ill and you get any permanent major disease, you may not be allowed to buy a life insurance policy. Therefore, it is suggested to buy one early on in your life because it remains in force if your health deteriorates later on. Insurance companies allow you to attach certain riders or benefits to your existing or new policy.

These riders enhance the quality of your insurance. The accelerated death benefit rider, for instance, allows the policy owner to avail all or a part of the policy's death benefit if he or she has less time to live due to a critical illness, or wants to use the money for medical treatment or related expenses.

PEACE OF MIND

Life is full of uncertainties and Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you've done all you can to help them tide over difficult times.

Life insurance is a great tool for both protection as well as helping a consumer save in a disciplined manner, which leads to creation of a good corpus for your family and future. The need for life insurance changes at different stages of your lifecycle depending on the financial obligations and dependencies.

So what are you waiting for...???


Unless you are immortal, buy life insurance.

Like this post? Share it with your friends!
Thank you!

FAQs on Public Provident Fund (PPF)

Many people have various doubts and questions regarding PPF account before going to open it.

In this article, I have tried my best to clarify the most common frequently asked question regarding PPF account. Below are the some of the frequently asked questions on Public Provident Fund (PPF).

What is a PPF account?

PPF (Public Provident Fund) account is a popular and one of the best long-term investment tool for salaried as well as the self-employed class of individuals in India. It was introduced by the Ministry of Finance in the year 1968. It offers risk-free and guaranteed returns with attractive interest rate and interest earned on deposits are exempted from Tax. The deposits made in PPF account can be claimed as tax deductions. This makes the PPF account one of the most attractive tax-efficient instruments.

Who can open a PPF account?

PPF account can be opened by any Indian Residing Individuals (18 years or above) and individuals on behalf of minors (below the age of 18 years).

Who can not open a PPF account?

NRIs cannot open a PPF account in India. PPF account holders who obtain NRI status after opening a PPF account can continue to maintain their accounts until it matures. Hindu Undivided Family (HUF) is also not eligible to open a PPF account.

How to open a PPF account?

You can open it at any nationalized, authorized bank and select post offices across India. PPF account can also be opened at specific private banks as well. PPF account in most of the banks can now be operated online. These accounts can be opened by simply filling a form, submitting the required documents and depositing the minimum pay-in at authorized branches.

Can I open a PPF account online?

No! You cannot open a PPF account online but yes you can easily operate your PPF account online. You have to fill up an account opening hard copy form and submit it along with the necessary documents to the bank.

What are the documents required for opening a PPF account?

Following documents are usually required for opening a PPF account:
  • Account opening form
  • Photograph (Passport size)
  • Identity proof 
  • Residence proof
When does a PPF account mature?

A PPF account gets matured on completion of 15 years from the end of the year in which the account was opened.

What is the minimum and maximum amount that can be deposited?

An individual can open a PPF account with a Rs. 100 but has to compulsorily deposit the minimum of Rs. 500 in a financial year and maximum of Rs. 1.5 Lacs.

How many deposits are permitted in a year?

You can make it in a single lump sum or in 12 installments during a financial year as per your conviniency.

What is the rate of interest for PPF account?

It doesn't remain same. The government of India decides the rate of interest for PPF account every quarter. The current rate of interest effective from 1 July 2017 on PPF account is fixed at 7.8% per annum. Interest earned on amounts held in PPF accounts is tax-free.

Can I maintain more than one PPF account?

No, you can't! You are allowed to maintain only one PPF account in your name. You can also open and maintain a PPF account in the name of a minor child.

Is nomination facility available for PPF account?

Yes, nomination facility is available for PPF account. You have to fill a nomination form at the time of opening a PPF account to avoid difficulties for the nominee later on.

What are the tax benefits from investment in PPF account?

The investments in PPF account up to Rs. 1.5 Lacs qualifys for the deduction under Section 80C of the Income Tax Act. The entire maturity entire amount including the interest is non-taxable (100% Tax Free).

Can a PPF account be transferred?

Yes! a PPF account can be transferred from one authorized bank or post office to another. The transferred PPF account will be considered as a continuing PPF account.

Can I transfer my PPF account to another person?

No!  PPF account is non-transferable from one person to another even the nominee cannot continue the account of a deceased subscriber in his/her own name.

Is partial withdrawal from PPF account allowed?

Yes! Partial withdrawals can be made from 7th year onward subject to certain conditions. Only one partial withdrawal is allowed every financial year.

Can I avail loan facility against my PPF account?

Yes! Loan facility can be availed against a PPF account, subject to certain terms and conditions. The loan can be taken only between 3rd to 6th financial years.

Is premature closure of PPF account allowed?

Yes, premature closure of PPF account would be allowed under certain circumstances such as serious ailment and higher education of children provided the account has completed five years. This shall be allowed with a penalty of 1% reduction in interest on the whole deposit.

How can a discontinued PPF account be revived?

To revive a discontinued PPF account, you need to pay the minimum deposit of Rs. 500 with default fee of Rs. 50 for each defaulted year.

Can I continue my PPF account after maturity?

Yes! The PPF account holder can continue his/her account after maturity. The tenure can be extended for one or more blocks of 5 years each on written request within 1 year from the date of maturity. There can be two types of extention:
  • Extention without contribution: The balance in the account will continue to earn interest at the prevailing rates till the account is closed. Also, in this case, any amount can be withdrawn without any restrictions once every financial year.
  • Extention with contribution: The account holder can make deposits as earlier. In this case, withdrawal is restricted to a maximum of 60% of the balance at the beginning of each extended period is allowed.
What will happen in the event of the death of the PPF account holder?

In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid even before the completion of 15 years, to the nominee or legal heir of the deceased person. The nominee or a legal heir is not allowed to continue the PPF account by making fresh subscriptions to it.

Why should I invest in PPF account?

PPF account is the safest saving instrument available as it is backed by government of India. The amount invested and the interest earned has a sovereign guarantee and returns are tax free. The investments in PPF account up to Rs. 1.5 Lacs qualify for deduction under Section 80C of the income tax act. Now you don’t have to stand in queues for PPF investments as in most of the banks you can now operate your PPF account online.

Hope this FAQs on PPF account is helpful enough to clarify your doubts and understanding.

Like this post? Share it with your friends!
Thank you!

MKRdezign

Contact Form

Name

Email *

Message *

Powered by Blogger.
Javascript DisablePlease Enable Javascript To See All Widget