Public Provident Fund (PPF)

PPF is a popular long-term investment scheme that is government-backed and meant to assist individuals in building a retirement corpus while providing favourable tax benefits. It allows investors to deposit a fixed sum annually, ranging from Rs 500 to Rs 1.5 lakh per fiscal year.

"The PPF has a tenure of 15 years, providing compounded tax-free interest, currently set at a rate determined by the government," explains Adhil Shetty, CEO of Bankbazaar.com. "One of its primary benefits is its EEE (Exempt-Exempt-Exempt) status—contributions, interest received, and maturity profits are all tax-free, making it a tax-efficient investment option," he adds.

"In addition, PPF accounts can be opened at designated banks or post offices across India, ensuring investor accessibility." "The scheme also allows for partial withdrawals after five years, providing liquidity in times of need," Shetty adds.

When the 15-year term expires, investors have the option of withdrawing the entire corpus or extending the account in five-year increments. The PPF is a fantastic alternative for risk-averse investors looking for consistent returns, tax advantages, and a disciplined approach to long-term wealth accumulation and retirement planning.