PPF investment.

[evadinrish]

I already have an NPS a/c where my employer is also contributing. Should I invest in PPF or should i go with other options like ELSS,mutual funds etc...

 

[ShavirB]

The answer to that will completely depend on your risk appetite. PPF is a 100% Govt backed scheme with almost ZERO Risk and Fixed Returns of 7.1%. ELSS and Mutual Funds on the other hand have higher risk, and offers variable returns of 10-13% over long term.

 

[17ysaurabh]

Since you are already investing in a long-term investment scheme like NPS. Therefore, investing in PPF won't make much sense.

Besides, I think your decision should be based on two facts:
1. Your risk appetite
2. Your goals
If you have short-term goals and you can take little or moderate risks, then there are better options than PPF. Like you said ELSS funds, Mutual funds etc.

 

[bokivichophy]

PPF investment have many benefits if do long term investment you will have more interest and also tax free

 

[Artharjan]

Public Provident Fund (PPF) is a popular long-term investment option in India, backed by the government. It's ideal for risk-averse investors seeking guaranteed returns and tax benefits.

Key benefits:

• Interest: Currently earns 7.1% annually, compounded for maximum growth.
• Tax savings: Investments up to Rs. 1.5 lakh qualify for tax deduction under Section 80C.
• Flexible investment: Invest a minimum of Rs. 500 or up to Rs. 1.5 lakh per year. Payments can be made in lump sums or installments.
• Long-term commitment: The lock-in period is 15 years, but you can extend it in blocks of 5 years.
• Low risk: Government backing ensures the safety of your principal amount.

PPF is a versatile tool for various financial goals. Consider it for retirement planning, saving for your child's education, or building an emergency fund. Remember, contributions must be made at least once a year to keep the account active.

 

[rohit_20085]

I already have an NPS a/c where my employer is also contributing. Should I invest in PPF or should i go with other options like ELSS,mutual funds etc

I already have an NPS a/c where my employer is also contributing. Should I invest in PPF or should i go with other options like ELSS,mutual funds etc...

The selection depends on your NPS investment strategy. If you have conservative allocation in NPS, PPF will not do much good. However, PPF investment has its own benefits:-
1. Tax free return.
2. principle exemption under 80(c).
3. Withdrawal of 25% amount tax-free after 5 years.
4. Investment in PPF cannot be confiscated/ freezed due to any civil/criminal proceeding