Liquidating mutual fund
If the falling interest rates on provident fund (PF) have been a cause of concern for you, then brace for a fall in the EPF rates again.
For, retirement fund body EPFO is likely to lower interest rate on PF deposits for 2017-18 compared to 8.65% provided to its 4.5 crore members for 2016-17, a labour ministry official has said.
Often there are numerous costs involved with switching.
Since EPF is considered a long-term investment, EPF subscribers should simultaneously look at alternative options like mutual funds for long-term accumulation,” suggests Jitendra P S Solanki, MCSI, CTEP, CFP and Financial Planner for Special Needs Dependent Family.
Thus, although PPF still remains one of the best and trustworthy investment options for accumulating your nest egg, the falling interest rates may erode your gains.
Although the dividends on ETFs will be credited into the subscribers’ account, but the members would be able to realise the entire rate of return on these equity-linked investments at the time of withdrawals.
The subscribers will also have the option to withdraw money while taking advances from their accounts, either by liquidating ETF units or from cash component.