InvestorQ : Is it a good decision to withdraw money from PPF and invest in stocks?
Tanya Mehta made post

Is it a good decision to withdraw money from PPF and invest in stocks?

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Swapnil Sarang answered.
9 months ago
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Investment decisions should primarily be based on your financial goals. Anchoring your decisions to financial goals will help you understand the risk you are comfortable in taking. That will form the basis of your asset allocation. Without any such details, it will be very difficult to give any suggestions with respect to your query. However, if I were to generalize, I would say it is a poor decision to withdraw money from your Personal Provident Fund (PPF) to invest in the stock market.

For the simple reason that the money comes under the EEE category ---so you will not be paying any tax on deposit, interest, and withdrawal. So, it makes sense to keep that account untouched till retirement. On the other hand, if by provident fund you meant Employee Provident fund (EPF) account, there are various stipulations for tax exemption. You need to weigh your options against the provisions and determine whether you will be better off investing in stock markets based on your portfolio allocation and risk attribution. 

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