FD vs PPF/EPF vs NPS vs Mutual Fund, Which one to choose
Everyone wants to become successful and want to secure their life for a long time. An easy way to become financially free is by “smart investing”.
For that, you just need to invest your money in such a way so that you get “Maximum Returns”, “Maximum Tax Benefits” and “Maximum Security of Life”.
Here, we will compare four investment option based on risk, liquidity, tax benefits and return.
But But But, keep in mind that all your investment depends on your “FUTURE GOALS”.
After reading this, you can manage your risk of loosing money. Also, you can take advice from your financial advisor.
1. National Pension System (NPS)
National Pension System (NPS) is a retirement savings scheme that was introduced by the Indian government in 2004. It is a voluntary, defined contribution pension system that allows individuals to save for their retirement. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Here’s a detailed breakdown of the various aspects of NPS:
NPS tier 2
NPS Tier 2 is an extension of the National Pension System (NPS) and is a voluntary investment option that provides more flexibility to the investors as compared to the Tier 1 account.
Tier 1 accounts are designed as long-term retirement savings plans; Tier 2 accounts can be used for short-term investments.
Here are some key features of the NPS Tier 2 account:
- No Lock-in Period:.
- No Minimum Contribution
- Easy Withdrawal
- Choose your Investment Options
Fixed Deposit (FD)
Fixed Deposit (FD) is a popular investment option that is offered by banks and other financial institutions in India. It is a low-risk investment option that provides guaranteed returns over a fixed period of time.
Here’s a detailed breakdown of the various aspects of FD.
PPF/EPF
Public Provident Fund (PPF) and Employee Provident Fund (EPF) are both popular savings schemes in India. While PPF is a government-backed savings scheme, EPF is a retirement benefit scheme for employees.
Here’s a detailed breakdown of the various aspects of PPF and EPF:
Mutual Funds
Mutual funds are investment options that pool money from several investors and invest the money in a diversified portfolio of stocks, bonds, or other securities.
Here’s a detailed breakdown of the various aspects of mutual funds
Summary
In summary, choosing the right investment option is crucial to achieving one’s financial goals.
Each investment option has its own unique set of risks, liquidity, tax benefits, and returns, and the choice of investment option should be made based on the investor’s individual financial goals, risk tolerance, and investment horizon.
SO keep investing smartly
