Kolkata: PPF or Public Provident Fund is one of the very few instruments that has almost kept its popularity intact surviving the transformation of the economy from a controlled to a market-oriented one. It was launched in 1968 as an instrument for encouraging long-term capital appreciation for the common person for use in the later stages of his/her life. Despite fundamental changes in the economy and the pronounced inclination of the middle class towards equities and equity-linked instruments such as mutual funds, PPF remains an item on the portfolio of millions of Indians. Let’s have a look at the attractions of this instrument.

The features of PPF are well known. One, an interest rate of 7.1%, which is offered by it for well over four years. The Centre didn’t lower the rates on July 1, though it could have easily slashed the rates and especially since the 10-year G Secs to which the rate is pegged has suffered a decline in yields. PPF rates are determined by........

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