Q: I am 50 years old and in service. I have recently withdrawn my Provident Fund from my previous employer, which is Rs. 5 Lakhs. I want to invest this money in Government schemes or Banks. Please suggest a good financial plan for me.
Answer: The Provident Fund is a debt instrument and hence reinvesting the PF money into another debt instrument would require you to consider the time horizon for investing. You could look at investing in Post Office MIS in joint name if monthly income is also desired. Else, you could consider NSC/ KVP/ PPF (up to Rs 70,000), Bank Fixed Deposits or you could also look at Pension plans as you might be looking at retirement. KVP and NSC are Post Office investments and are common instruments in India. NSC is National Savings Certificate and KVP is Kisan Vikas Patra.
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