Consider alternative choices before withdrawing from the provident fund.

In these difficult economic times, many people are turning to their provident fund (PF). Since April 2020, nearly 3.5 crore members have withdrawn funds from their PF accounts. During a crisis, however, financial consultants normally advise that money in an employee provident fund or the National Pension Scheme should be the final investment liquidated. These retirement savings plans help a person to build a reserve for the future during their working years, and they should only be utilized if the person has nothing else to redeem. If it is partially withdrawn now, you may run into problems later in life.

It is simpler to liquidate bank fixed deposits, business FDs, and liquid and debt funds. Direct equity and equity mutual funds are the main types of equity investments. These instruments are easy to liquidate. 

A person can liquidate their gold exchange-traded funds or gold savings accounts if they have any. It may be difficult to achieve the proper price if someone is selling sovereign gold bonds on exchanges. The majority of minor savings plans are difficult to liquidate. EPF and other pension plans should be left alone unless none of the other choices work.

Unless you choose for a distressed sale, selling a home is always difficult. Instead of taking money from the provident fund, there are alternative choices to explore. Traditional life insurance plans or even national gold bonds might be used to secure a loan.

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