How to benefit from PPF account maturity- check where to invest for more returns

PPF Account Maturity: The Public Provident Fund (PPF) is considered to be one of the best schemes for retirement funds. With PPF, employees can make a long-term investment. Through PPF, you can save Rs 1.5 lakh annually under Section 80C of the Income Tax Act. You also get the facility of partial PPF withdrawal.

One can invest up to Rs 1.5 lakh annually, whether in a lump sum or several instalments, one can invest at least Rs 500 in this account in a year. You get an annual return of 7.1 per cent on your funds. One can extend the PPF period with maturity.

How will the fund grow further?

What are the rules for investing in PPF?

One can extend the PPF account for another five years, for this, one needs to visit the office within one year of the maturity and tell the officials there that you want to extend it. If you want to extend it without making a deposit, you are allowed to do that. You do not need to make any further contributions; you will continue to earn interest on top of that.
In this way, you will keep earning returns on the fund without investing any money. Not only this, but the amount you withdraw from your PF account every year will also be tax-free.
 

Invest funds elsewhere

One can also invest the earned money by investing it somewhere else. For this, you will have to close your account by filling the closure form. After 15 years, you can get a good amount of money; if you do not need it, it can be invested somewhere in a better investment option.

Where to invest money earned from PPF after 15 years.

Real Estate

Depending on your amount, you can invest in an investment avenue like a property, farm, or flat.

Debt Funds

Invest in debt funds. Debt-oriented hybrid mutual funds park 65-75 per cent of their assets in debt funds.

Balanced Advantage Funds

Invest in dynamic funds, in which your money is allocated between debt and equity according to the market valuation.