Your Questions About Advantages And Disadvantages Of Investing In Ppf

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Michael asks…

What is the better NPS or PPF ?

plese tell me the better option for me.

Justin answers:

Both have their different advantages and disadvantages.

1) for short term savings PPF is better, but for long term NPS is better
2) Both are Tax saving instrument, but PPF interest you get after 15 years is Free from Tax.
But in NPS you get 40% return after your retirement and remaing 60% you have to invest in mf etc.
3) you can Take Loan against PPF account after 6 years. But NPS deposit Tier 1 not allowed for Premature withdraw
4) in PPF you have to deposit 500 minimum annually but in NPS you must have to deposit 6000 annually i.e. 500 per month.
5) PPF Compound interest is calculated while NPS your some %age of money spend are in ration till the age of 35 E-50%,C-30%,G-20%
E Class scheme(Investment would primarily be in Equity market instruments.)
G Class: Investment would be in Government securities like GOI bonds and State Govt. Bonds
C Class: Investment would be in fixed income securities other than Government Securities
6) if you having good Job and your company open NPS account and give some contribution in that then it is benefit for you.

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