Ppf vs mutual fund
PPF (Public Provident Fund) and mutual funds are both popular investment options in India. However, they have distinct characteristics and serve different purposes. Here's a comparison between the two: Nature: PPF is a government-backed savings scheme, while mutual funds are investment vehicles managed by asset management companies (AMCs). Risk and Return: PPF is considered a low-risk investment option with a fixed annual interest rate determined by the government. The interest rate is generally higher than most fixed deposit rates. On the other hand, mutual funds carry varying levels of risk depending on the investment strategy and underlying assets. They can generate higher returns but also involve the possibility of losses. Lock-in Period: PPF has a long-term lock-in period of 15 years. However, partial withdrawals and loans are allowed after a certain period. In contrast, mutual funds do not have a fixed lock-in period, and investors can buy or sell their mutual fund units at ...