Why do people do not invest in PPF

I would consider PPF as one of the finest avenues of investment , especially as one of the strategies to achieving your retirement planing goals along with any pension plans,MFs and direct exposure to stocks that you may have

I have spoken to quite a lot of people about this and found these are reasons that people generally have avoided or do not have a PPF account

Do not even know there exits something called PPF
People know that compounding is an amazing way to make your money work harder , they know it is something which works wonders when seen from an long term prespecive.Yet you ask them about instruments available in India , which will allow them to compound their investment , you will suddenly encounter a silence.

Money gets locked in for 15 Years
This true ,yes of course you can avail loans and all those , but I would believe for real benefit of PPF to be availed , you would need to let the money be there for 15 years. and if you look at PPF as part of your retirement strategy , you would not feel that lock-in of 15 years is a disadvantage , but rather something that just help you accumulate your retirement nest.

Government can change the Interest rate any time
This true , PPF interest rates have changed from the time I had opened my PPF account . but times have changed , it is the age of coalition government and end of single party rule and hence would consider that going forward , it would not be so easy for governments to tamper with PPF interest.So may be we start taking advantage of these uncertain political times to build our PPF account.

So would recommend that your open up your PPF account today , if you still do not have one and if you do have one start maximizing your contribution towards your PPF. unlike a ULIP , which hugely rewards the agents there are no such incentives for an PPF agent , hence this product is rarely recommended or aggressively promoted