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Public Provident Fund (PPF), a retirement planning-focused instrument, has a lock-in period of 15 years. In this investment, the overall interest earned during the period of investment as well as the maturity amount is tax-free. Since 15 years is a long period, reaching the maturity in case of PPF is itself like completing an important milestone in the financial journey. However, on reaching maturity, many may be plagued by the 'What's next' question. In view of this, let's look at some of the options to proceed with the PPF account once it matures: Close the account and withdraw the entire amount Investors can transfer the entire amount (generated from  PPF investment ) to a savings account by submitting an application to the bank or post office. Extend the account without fresh deposits The  PPF account  can remain active even after maturity, without making any fresh contributions. It continues earning tax-free interest after maturity. This means investors can continu

A long-term investor has a chance to buy at healthier valuations and reap the rewards as it continues to grind higher over a period of time. The key to success is to have a plan and stick to it regardless of market levels. The legendary investor Warren Buffett always stressed on the benefits of long-term investments. His famous quote “If you aren’t thinking about owning a stock for 10 years, don’t even think of owning it for 10 minutes” explains his investment philosophy. Many cringes at the thought of investing in the long term. The volatility in March 2020 unnerved many investors whose first reaction was to exit their investments in haste. A closer look at data reveals that long term investments always outperform short term investments. For example, large-cap funds have delivered annual returns of 3% in three years and 7% in the five-year period. Similarly, small-cap funds have delivered annual returns of -4% in three years and 7% in the five-year period. The minimum returns for equi

The period of retirement means the end of work. Old age is vastly different from the young age due to increased medical expenses and less capacity to work. Traditionally senior citizens prefer to invest in fixed deposits or fixed income schemes offered by the government. They prefer to have a lighter portfolio since they are more concerned about protecting their capital and are generally risk averse. They prefer investments that have low risk and high liquidity even if it offers moderate returns. However, inflation has the biggest impact on the lives of senior citizens. It affects their spending patterns. Lack of awareness forces them to invest in traditional savings instruments that work like double edged swords.    The mutual fund universe is vast and offers products for every class of investors. Mutual funds are not only liquid but they also offer higher return than traditional saving instruments. Debt funds, balanced funds and liquid funds are ideal for senior citizens. Since

  If your retirement is approaching it is time to shore up your portfolio. The idea of retirement is an exciting one, it feels like reaching the destination after a long journey. However, it is important to maintain a comfortable lifestyle even after retirement. This means you need to take stock of your investments because they will become your income source to enjoy a comfortable lifestyle. Everybody wants a comfortable retirement which can help to fulfill unfinished passions like volunteering or travel. However, for this to happen, one needs a realistic view of one's finances. Many times, due to insufficient savings, there is a gap that needs to fill or one may have to alter his retirement lifestyle.  The expenses should match the present income you have. However, you do have the option to eliminate unnecessary expenses and save money. During retirement, you have to survive purely on your savings.  If your retirement is still a few years away, it is time to evaluate your portfoli