Prajna Capital - An Investment Guide

Your provident fund is your social security. When you switch jobs, make sure you update your PF account also THE ONLY thing constant in life is change. Golden words. But it’s one stark reality that you may have to face one day. Harsh Mehta, a middle-level executive, was in a similar state of mind while handing over his resignation letter. For the 36-year-old, who worked for more than a decade in the company, it was an emotional moment, since this was the place from where he started his career. Mehta, in need of funds, decided to withdraw money from his provident fund account, little realizing the implications of the decision. A year down the line, Mehta, unable to perform in line with the expectations of the new firm was thrown out of the job. The old company refused to reinstate him. He was caught off guard. He took up a job in a little-known company at a much lower salary to support his family. Most people in India don’t realize the importance of a PF account. Here’s a lowdown on wha...