Saving For Life’s Winters

A pharmacist by profession, 37-year-old, Sachin Acharekar always preferred traditional tools for investment purpose. He started investing in a Public Provident Fund (PPF) account way back in 2007, when he was just 25. His motive was to create a corpus for the future. While he admits that a PPF account back then was one of the most feasible option, it also came with a lot of benefits, the best being the tax exempt-exempt-exempt factor. “You could get deduction up to Rs1.5 lakh under Section 80C of the Income Tax Act, 1961, which helps you save tax,” he said. Another reason why he chose PPF was the power of compounding. For him, PPF was always a better option comparing other central government saving or investment schemes. “I gave priority to PPF given the income tax deduction under 80C.” For example, if PPF was giving return at 8.6 per cent rate at that time,...