Basic Information about PPF

Public Provident Fund – Its long term investment plan, any India citizen / resident of India can open PPF account. Its complete tax free for the interest received from PPF. The scheme has been introduced for Salaried / Self Employed/ even for Minor you can open PPF if you’re are guardian.

PPF account holder can invest as minimum as 500 and maximum up to 100,000 and limited to 12 transactions in a year. After completing of 15 years you can withdraw the money with interest and principal. If you want to extant after 15 years you do that by continuing to next 5 years.

You can take loan from your PPF account; loan could be taken from 3^rd year onwards till the sixth year.  

PPF account can be opened from all State Banks, Bank of India, Central Bank of India, Bank of Baroda, ICICI Bank and in Post office too.

Basic Information about Mutual Funds

Mutual Fund also called an investment vehicle that is made up of a pool of funds collected fund many investors and invested in Stocks, Bonds and money instruments. Mutual funds are maintained by Asset Management Company (AMC). For that Asset Management Company will charge little fees as commissions or Fees. Each fund will be management by Fund Managers they will have team where in the team analysis and prepare a portfolio for particular funds.

Type of Schemes

Open ended schemes

Close ended schemes

Open ended you can buy any time and sell any time, Net Asset Value will change on daily basis.

Close Ended Schemes AMC will announce the scheme and particular schemes will be closed for certain years where you cannot exit or buy any units during the time period.

Type of Plan

Equity Funds

Debt Funds

Diversified Funds

Gilt or Gold Funds

Money Market Funds

Sector Specific Funds ( Eg Bank, Steel, Manufacturing etc.,)

Index Funds

Tax Saving Funds

Type of payments

Dividend Paying

Growth Schemes or reinvestment

Mutual Fund topic cannot be explained in small blog, so please do more research before investing.