PPF Maturity Investment

Make PPF earn after Maturity

1. Let's presume that you would like to initially "shift" your PPF amount after maturity into "safe" debt funds with decent returns, and then activate STPs from them into Equity funds of your preferred AMCs for "better" returns.

2. You should invest your matured PPF amount into Income debt funds of 1/2 of your preferred AMCs.

3. These short-term Income debt funds will serve as the "source" funds for transferring amounts through STPs into your chosen "target" equity funds of their respective AMCs.

4. During the transfer period, these Income funds will enable you to avoid the risk of timing the equity market by investing periodically at your chosen intervals.

5. At the same time, these funds will earn you low-risk market returns till they are fully transferred into Equity funds.

6. Start monthly STPs to shift regular amounts from these Income funds into Balanced Equity funds, with Growth option, of your chosen AMCs, and complete the "transfer" process in around 2 years for "moderate" inflation-beating returns.

7. For "higher-returns" potential, depending on your risk appetite, you can later invest half the amount in Multicap funds, with Growth option, of the same AMCs, by starting STPs from your Balanced funds after the 1st year, and complete this process in another 1 year.

8. After 3-4 years, you can do periodic rebalancing of your funds for wealth protection, and even review them for replacement with other funds if they are significantly underperforming than their peers.