Public Provident Fund has an initial lock-in period of 15 years. Once it matures after 15 years, the following are the guidelines that can be employed:
Age and retirement time – If age is greater than 60 or if one is already retired and one does not have sufficient retirement income – Then one can invest 15 Lakhs of the proceeds in Post Office Senior Citizens Scheme. returns won’t be great, but considering that nothing else can give 7+% returns, you can live with the returns. The rest can be invested in liquid funds for immediate needs.
If age is less say around 40s, and you have been regularly investing in PPF early on – please continue the PPF for the next 5 years slab and continue investing max amount if possible. The compounding that happens on a large base is something you can never get anywhere. This is the safest bet in 5 years.
If you somewhere in between in age and don’t have enough investments, I would suggest extending the PPF for another 5 years, since this situation means that you have not planned your financials or have other issues that force you not to plan finances. So it is better to play safe
If you are having enough wealth created out side of PPF, you want to extend or redeem the PPF based on your current demands.