PPF only after the age of 45+???

POSTED BY Mohan Kishor ON January 17, 2011 4:54 pm COMMENTS (3)


Hi friends,

I am 31 years old. Recently I opened my PPF account. I am already having a CPF(Contributory PF) done by me and by my employer. Is it wise to deposit 70k in PPF in addition to EPF??

Recently I read an article on Pension products from subramoney.com. (It is also a very good blog like jagoinvestor. Infact from jagoinvestor only I came to know to know that blog. i bought the book “Retire Rich-Invest 40/- a day” by Mr.P.V.Subramanyam and read it, its nice.)


As per Mr.Subramanyam, it is said that PPF is better for only 45+ people. but till now in all the television shows (NDTV Profit), i heard one should think of equity only after completing his portion of EPF & PPF is done. please share your views on this….

Else, as I am already exposed to debt product through EPF, is it better to divert the money to equity investment through SIPs route for long term??



3 replies on this article “PPF only after the age of 45+???”

  1. Atul says:

    Hi Mohan,

    Think why number 45. Assuming you are working person and will retire when you reach 60. Thats 15 years difference and duration for holding PPF account. One can always extend as well.

    When one retires at 60+, the PPF amount (tax free as long as DTC does not change it) is retirement fund.

    On the other hand, after 45+ age people should reduce equity exposure and increase debt exposure. Guaranteed returns. I am sure no one would like to change jobs after 45+ years of age, less risk.



  2. PPF is one of the financial instruments which people have over exposed themselves too .. They put 70k per year on the 1st Apr and then only they do anything else in life . This is not recommended .

    For young people who are around 30-35 , they EPF is enough to take care of their debt component , unless their ears bleed just by hearing EQUITY and SHARE MARKETS ! .

    So Putting more money in PPF that too upto full limit , that too for all the initial years of their young life when they could have taken good risk is just not recommended ..

    The funda is simple , Dont overdo it !

    I agree with Subra , if he says it , its worth listening ! (almost all the time)


  3. Ramesh says:

    I would agree with the views of Mr Subramanyam. He has provided various alternatives.

    Regarding the TV shows, you have to understand that the answers provided are more like horoscope reading rather than a principle. No doubt you can gain good information, but do not follow it like a zombie. That is actually for any information, even from Mr. subra or from me.

    Put basic principles and your own needs in perspective.

    For young people, putting a major chunk in PPF is not good as it will only give you “less-than-inflation” return.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.