Smart Investment Strategies with Srishti Gosavi: Comparing NPS, PPF, and EPF

When it comes to choosing where to invest their hard-earned money, many people find themselves in trouble between the NPS, PPF, and EPF. Every choice has its own benefits and understanding these can assist you with settling on a more educated choice. Finance influencer Srishti Gosavi shares her advice on how to navigate these investment paths.

Returns: Which Choice Offers the Best Development?

While an individual can diversify their investments by investing into each of the 3, you should also know which one is better:

• PPF: 7.1%
• EPF: 8.25%
• NPS: 12-15% The highest part is invested in equity (Tier I class E NPS)

Among these, NPS stands out with the highest returns due to its equity component, which can significantly boost the overall performance.

Development Period: How Long Will Your Cash Be Restricted?

The maturity period of an investment determines how long you have to wait before you can access your funds:

• PPF: 15 years
• EPF: Until retirement
• NPS: Until retirement

While PPF offers a shorter maturity period, it is essential to take note that partial withdrawals are allowed in all three investment options after 5 years, subject to specific conditions.

Tax Benefits: Boosting Your Investment funds

Tax benefits play a crucial role in investment decisions. Here's a breakdown of how every option charges:

• PPF: Tax benefits under Section 80C up to Rs 1.5 lakhs.
• EPF: Tax benefits under Section 80C up to Rs 1.5 lakhs.
• NPS: Tax benefits under Section 80C up to Rs 1.5 lakhs, plus an additional Rs 50,000 under Section 80CCD(1B).

NPS offers an exceptional benefit with the extra tax reduction of Rs 50,000, which makes it the best choice for those hoping to expand their expense investment funds.

Why NPS Might Be the Best Choice?

1. NPS gives higher returns compared to the other two investment options.
2. NPS gives nine different plans, giving you a variety of choices to potentially earn more returns.
3. Additionally, you end up saving taxes as Section 80C is only up to Rs. 150,000 and NPS gives additional buffer of Rs. 50,000.
4. EPF is a mandatory deduction, thus we can't do much about it but if given an option between PPF and NPS. According to Srishti Gosavi, she would personally choose NPS as her retirement option!

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Eventually, diversifying your investments can likewise be an insightful methodology. By understanding the unique benefits of each option, you can fit your investment strategy to best meet your financial goals.