PPF Saving Scheme is Worthless Now – Savers are Losers Now
PPF is one of the most widely used saving scheme in India which offers guaranteed 8.5% annual returns and tax benefits. In fact, there is a common propaganda that everyone should invest up to Rs.70k every year in the PPF Scheme because of its long term benefits and returns after several years.
In fact, Saving your Money in PPF is the most widely used financial advise by the financial planners, bloggers and finance gurus in India.
But Do you know that, the Rules of Money have been changed now?
Today, the reality is that, Investing in PPF can actually hurt your money? Well, Yes. Today if you invest your money in the PPF than after 1 year you will be poorer than today and not rich even if you earn 8.5% interest on your invested money.
This is because the inflation rate is 14% in India (In July 2010) right now and the average annual inflation rate in India is 10.50%. Thus, actually you are earning – 2% returns on your PPF returns.
Thus, if you invest 100 rupees in PPF than it means that you are actually loosing 2 rupees annually on it even though you are earning 8.5 rupees of interest on it. Because the average inflation is 10.5% which is eroding the purchasing power of your money.
The Government assures us that, it will control the Inflation very soon. But well, its not possible because the US Government is printing dollars like hell which is diluting the purchasing power of the existing money in the circulation by causing uncontrolled inflation affecting the developing economies also.
Thus, Today Investing in PPF is the Most Dangerous Personal Finance advise that anyone can give you.
This is because investing in PPF today means investing your money to reduce its purchasing power and nothing else.
So How the Rich play the Game of Money? Well, the Rules of Money have been changed now and the Rich plat the game of money differently. In fact, the rich teach their kids different things about money that the poor and middle class don’t.
Recently I have published an eBook about these new rules of money. You can Download it right now for FREE and learn these new lessons on Money. Here is the Download Link.
0 comments:
Post a Comment