EPF, VPF, PPF, NPS: If you want to create a big retirement fund, then invest in these schemes, know what are the benefits


Retirement planning at the right time is very important for every person. According to experts, a person should start saving for retirement funds only after getting a job. The sooner you start saving, the more retirement funds you will be able to create. Retirement funds are very important to meet the post-retirement needs. Today we are going to tell you about such investment options, through which you can create a good retirement fund.

Employees Provident Fund (EPF)

In a company with more than twenty employees, contributions are accumulated for the employee’s PF. In the PF account of the employee, 12% of his basic salary and DA are deposited by the employee and the same contribution by the company. Pension funds are also included in the EPF account. Pension fund is given to the employee after retirement. Currently, the interest rate on EPF is 8.5 percent.


VPF is called voluntary provident fund. That is, investing in it depends on the will of the employee. This is an extension of the EPF. Investors can invest in VPF only if they have an EPF account. Like EPF, VPF is also getting 8.5 percent interest. In this scheme, the employee has to deposit more than 12 percent of his basic salary and DA in the PF Fund. Any salaried employee can deposit up to 100% of his basic salary and DA in VPF account.

Public Provident Fund (PPF)

PPF is a great investment option for creating a retirement fund. PPF is a saving scheme supported by the Government of India. The best thing about this investment option is that the investor gets the benefit of interest rebate at three levels. In this plan, the maturity amount and interest income are also tax free. Also, by investing in this scheme, the investor can save income tax of Rs 1.5 lakh every year. The Public Provident Fund comes with a lock-in period of 15 years. It can also be extended further. Presently the interest rate on PPF is 7.1 percent.

National Pension System (NPS)

Both government employees and ordinary citizens can invest in the National Pension System. People between 18 and 60 years of age can invest here. Accounts can be opened under this scheme by going to all government and private banks around the country. NPS is managed like a mutual fund. Therefore, very good returns can be obtained from the National Pension System. In NPS, the investor has to deposit some amount every month during his job.



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