Study funds are an excellent medium-term savings vehicle, for either salaried employees and the self-employed. The underlying principle is simple: You deposit a specific amount of money each month, or a lump sum at the end of the year (if you are self-employed) and let your money gain returns over the next few years.
What is a study fund and what are its advantages? A study fund is a medium- to long-term savings vehicle for either salaried employees or the self-employed, which grants tax benefits on contributions to the fund, as well as on accrued profits over the investment period up to the maximum amount of deposits allowed. The funds are managed in a variety of investment tracks, from which you can choose the one that is right for you. The funds accrued in the fund are liquid for capital withdrawal after 6 years from the date of the first deposit, or after 3 years in case the money is used for continuing education or if the member has reached retirement age. There is no obligation to withdraw the funds after 6 years. Money can be left in the fund where you can enjoy returns on your savings.