Why CA Sandeep Kumar Thinks PPF Is the Smartest Investment You're Overlooking

Finance expert CA Sandeep Kumar highlights one of the most forgotten investment options that is risk-free, safe, and tax-free: the Public Provident Fund, or PPF. While many investors focus on SIPs and market-oriented investments, PPF remains one of the least considered options, as there are no promotional benefits for financial advisors. However, this government-backed scheme offers an excellent option for those seeking stability and steady growth.

Why PPF Is Often Overlooked

The most critical reason why PPF is not given due importance is that it does not give any kind of commission to the financial advisors. While in SIPs, an advisor makes a commission on such investments, the absence of incentives in PPF often gets sidelined. However, that should not make investors dismiss this opportunity, as it provides real value and the power of compounding over time.

Tax-Free Returns and Stability

The returns on PPF are assured, irrespective of the market; be it a rising market or a falling market, the values will remain the same. As of now, PPF is paying an interest of 7.1% with tax benefits; considering the deduction under Section 80C of the Income Tax Act, your effective return may even overshoot 10% and therefore is an attractive option for a long-term investor.

Safe and Secure Investment

Government backing to PPF ensures that it is a safe and secure investment. It is for those people looking for a tension-free way of growing their wealth over time. With tax-free returns, guaranteed interest, and no market risk, PPF is a perfect addition to any investment portfolio.

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If your investment portfolio has been struggling with market volatility, consider adding PPF to balance it. With its stable, risk-free returns and tax advantages, PPF is an excellent way to secure your financial future. Share this with friends whose portfolios are underperforming, and help them achieve financial stability.