Latest PPF rules: Can NRI continue investing in Public Provident Fund account he opened when he was an Indian resident?
Before my son went overseas for his higher education, he opened a PPF account in an Indian bank. He has continued to invest in it even after getting a job abroad. Is this acceptable as per the PPF rules?
Dev Ashish, Founder, StableInvestor, and Sebi-registered investment adviser: If your son opened a PPF account in India as a resident and later became an NRI, he can continue the account till maturity.
Contributions and interest accrual are allowed till the end of the 15-year term, but the account must be closed on maturity and cannot be extended. It’s important to note that while NRIs can maintain their PPF accounts, they must do so under non-repatriation terms. This means that the funds cannot be transferred abroad or converted to foreign currency.
It’s essential to inform the bank of the change in residency status to comply with regulations and continue the contribution till maturity.
I’ve been investing in mutual funds for 14 years. I’ve noticed that the funds that have performed well initially, such as Axis Bluechip and Aditya Birla Sun Life Frontline Equity, both large-cap funds, have failed to remain consistent. Advisers typically suggest investing via SIPs and keeping a simple portfolio with fewer funds. However, some funds with five stars in 2010 are now down to just one star. My investments have grown, but I’m unsure whether to redeem these underperforming funds and reinvest in better rated ones, as these could incur capital gains tax.
Prableen Bajpai Founder, FinFix Research and Analytics: While evaluating the performance of mutual funds, don’t rely too heavily on star ratings.
