Soundarya, Chennai, soundaryanarayanan@yahoo.com

I am a 30-year-old married woman with a year-and-a-half-old son. I need advice on Public Provident Fund (PPF) accounts. I am planning to open three PPF accounts; in my husband, son and my name. My husband and my accounts are for retirement funds. My son’s account will be used for his higher education. Is this a wise decision?

Investing in PPF is undoubtedly a wise decision keeping long-term investment and other features in mind. I am sure you are aware of the 15-year lock-in period. However, you may avail of a loan, and the maturity limit is tax-free. The interest rates are declared by the government every quarter, and it has been reduced to 7.1 per cent. I would also suggest planning for your son’s education and your retirement and then considering an investment in ELSS. Mutual funds also offer tax savings. However, there is a lock-in period of three years, and returns are higher. The risk involved can be mitigated by long-term investment. Spread your investment in different asset classes and consult a financial planner.

Hina Shah, Certified Financial PlannerCM & Coach, LUHEM