“Withdraw your PF and invest in mutual funds. I can get you 12% guaranteed.” That’s what a financial advisor told someone recently. Sounds smart? “It’s actually reckless advice,” said Abhishek Kumar, a Sebi-Registered Investment Adviser and founder of SahajMoney.
“Because here’s the truth: no one can ‘guarantee’ 10–13% returns in mutual funds. That’s not how market-linked products work,” he said in a recent Linkedin post.
Kumar, who has been in the financial planning business for over 15 years, says he has seen many such cases—“well-meaning families being misled in the name of ‘higher returns.’”
He calls this kind of advice dangerous, especially when it involves the Provident Fund, or PF. “PF is your retirement safety net. That money is meant to grow slowly, safely, and tax-free. Touching it for higher-risk products can wreck your future security.”
While mutual funds can be valuable tools for wealth creation, Kumar stresses they are not meant to replace guaranteed instruments. “Mutual funds are great, but not for guaranteed income. Returns are market-driven. One year may give 15%, another might give -2%.”
The push for guaranteed returns, he adds, often comes from individuals who don’t have the investor’s best interests in mind. “Many ‘advisors’ are actually sales agents. They earn commission when you invest through them. That means their advice often serves their income, not your goals.”
And just because it’s possible to withdraw PF doesn’t mean it’s the right choice. “Yes, you can withdraw PF. But should you? Unless there’s an emergency or a solid retirement backup—don’t mess with it.”
Kumar also points out that “risk isn’t always visible up front.”
“When the market crashes, it’s not the advisor who suffers—it’s you,” he added.
His advice for individuals is to stay alert and avoid falling for promises related to market-linked returns. “So take ‘guarantees’ with a mountain of salt. If your advisor pushes risky products with fake guarantees, fire them. A real advisor will protect your peace of mind, not gamble your future.”
(Disclaimer: This article is for general informational purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before making any investment or financial decisions. The views expressed are independent and do not reflect the official position of the India Today Group.)
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