PPF laws do not authorize any individual to access more than one account and run it. Whenever a second account is opened by someone, the second account is considered as null. That being said, if you are able to display that the second account released was not malicious, you can get the second account mixed with the first account. To do so, you must file a request with the Ministry of Finance’s Department of Economic Affairs. If interest is applied to the second account, it will be modified and if the cumulative contribution reaches the cap of Rs 1.5 lakh in both accounts jointly for the year, the excess amount will be reimbursed without the interest amount.
In terms of returns, should I contribute towards the National Pension System (NPS) or mutual funds?
Different structures comprise NPS and mutual funds. At the point of investment, NPS provides you with a tax gain and is a long-term tool, but limits your stock exposure to 50-75%. After that, mutual funds perform high as higher stock exposure can be achieved, according to the risk profile. Mutual funds also have liquidity for you, allowing you to prepare and handle cash flows. On the other hand, NPS can be a good option for retirement plans. NPS will allow you to save tax, but larger gains are likely to be provided through mutual funds. An individual should opt for NPS for a portfolio framework anticipated for the long term with low to moderate risk and higher tax performance. Mutual funds should be the go-to investment option for investments where higher risk is to be assumed or liquidity is to be prepared for emergency corpus, as well as other short- or medium-term priorities.
