Kisan Vikas Patra

&
Public Provident Fund

Name : Nishit Bhrambhat

Class : SYBCOM
Roll No. : 29
Subject : Investment Management
Year : 2020-21
Points to be Cover

 What is Kisan Vikas Patra?

 Who should invest in the KVP scheme
 Benefits of Kisan Vikas Patra
 Public Provident Fund India
 Features Of a PPF
 How To Open a PPF Account
What is Kisan Vikas Patra?

Indian Post introduced the Kisan Vikas

Patra as a small saving certificate scheme
in 1988.
Encourage long-term financial discipline
in people.
Initially,
it was meant for farmers to
enable them to save for long-term, and
hence the name.

As per the latest update, the tenure for the

scheme is now 124 months (10 years & 4
months) if you purchase the certificate
between 1 July 2021 and 30 September
2021.
The minimum investment amount is Rs.
1000 and there is no upper limit.

In 2014 made PAN Card proof

compulsory for investments above Rs.
50,000.
Who should invest in the KVP scheme

Any Indian citizen above the age of 18

years can buy a Kisan Vikas Patra from
the nearest post office.

People from rural India (with no bank

account) find this particularly appealing.
You can also buy one for a minor or
jointly with another adult.

Don’t forget to mention the date of birth

of the minor and the name of the parent.
Benefits of Kisan Vikas Patra

1) Guaranteed returns
Regardless of the market fluctuations, you
will get the sum guaranteed.

2) Interest
The effective interest rate for KVP
depending on the number of years invested in
KVP  at the time of purchase.
3) Tenure
The maturity period for Kisan Vikas Patra
is 124 months and you can avail the corpus then.

4) Capital protection
It is a safe mode of investment and not
subject to market risks.
Public Provident Fund India

Public provident fund is a popular

investment scheme among investors
courtesy its multiple investor-friendly
features and associated benefits.

Itis a long-term investment scheme

popular among individuals who want to
earn high.
Safety of the principal amount is the
prime target of individuals opening
a PPF account.

A Public provident fund scheme is ideal

for individuals with a low risk appetite.
Features Of a PPF

1) Investment tenure

An investor can choose to extend this tenure by

5 years after lock-in period is over if required.
A PPF account has a lock-in period of 15 years
on investment, before which funds cannot be
withdrawn completely.
2) Principal amount

A minimum of Rs. 500 and a maximum

of Rs. 1.5 Lakh can be invested in
provident fund scheme annually.
An individual is eligible for only 12
instalments into a PPF account in one
financial year.
3) Loan against investment

Public provident funds provide the benefit

of availing loans against the investment
amount.
Only 25% or less of the total amount
available in the account can be claimed
for this purpose. You will have to repay
the loan in 36 months.
How To Open a PPF Account

Both offline and online procedures are

available for an individual provided
he/she meets requisite parameters
mentioned in the eligibility criteria.

 Activating PPF online can be done by

visiting the portal of a chosen bank or
post office.
The following documents have to be
produced at the time of activation of a
public provident fund account :
1. KYC documents verifying the identity
2. PAN card.
3. Residential address proof.
4. Form for nominee declaration.
5. Passport-sized photograph.