Question
What is the lock-in period for Public Provident Fund?
Solution
The Public Provident Fund is a low risk, long term, fixed income investment. PPF was introduced in India in 1968 with the objective to mobilize small saving in the form of investment, coupled with a return on it. The invested money is locked-in for a minimum period of 15 years , which can be extended in blocks of 5 years, if required. However, the scheme permits partial withdrawals from year 7 i.e. on completing 6 years. An account holder can withdraw prematurely, up to a maximum of 50% of the amount that is in the account at the end of the 4th year.
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