Read on Twitter
1/11
A Thread about PF/PPF and VPF.
When I started my job, no one told about this and still many people don't know about VPF. I regret not knowing about it for long time in my job.
PF/VPF is the best and will beat all the Debt/Liquid Mutual Funds hands down.
A Thread about PF/PPF and VPF.
When I started my job, no one told about this and still many people don't know about VPF. I regret not knowing about it for long time in my job.
PF/VPF is the best and will beat all the Debt/Liquid Mutual Funds hands down.
2/11
PF as most of you might be knowing is provident fund. Both employee and employer should contribute 12% of basic salary each every month as per the government rule. Current interest rate of PF is 8.5%.
PF as most of you might be knowing is provident fund. Both employee and employer should contribute 12% of basic salary each every month as per the government rule. Current interest rate of PF is 8.5%.
3/11
PPF is public provident fund which has lock-in period of 15 years. You can contribute any amount to it yearly from Rs. 500 to 1.5 lakhs. Current interest rate is 7.1%.
I don't have PPF account and never invested in it. In my opinion it's not worth when compared to PF/VPF
PPF is public provident fund which has lock-in period of 15 years. You can contribute any amount to it yearly from Rs. 500 to 1.5 lakhs. Current interest rate is 7.1%.
I don't have PPF account and never invested in it. In my opinion it's not worth when compared to PF/VPF
4/11
VPF is voluntary provident fund which I came to know only after few years in my job.
Its actually same as investing in PF account but instead of fixed 12% you can contribute upto 100% of your basic salary.
8.5% interest rate and return amount is completely tax free.
VPF is voluntary provident fund which I came to know only after few years in my job.
Its actually same as investing in PF account but instead of fixed 12% you can contribute upto 100% of your basic salary.
8.5% interest rate and return amount is completely tax free.
5/11
Many people don't know that they can contribute to VPF and hence open PPF account. I recommend increasing contribution to PF account instead of PPF as you get better interest rate and no lock-in period.
Many people don't know that they can contribute to VPF and hence open PPF account. I recommend increasing contribution to PF account instead of PPF as you get better interest rate and no lock-in period.
6/11
When I was not into trading, I myself was contributing 100% of my BASIC salary into PF/VPF account. I was not investing in any debt/Liquid MFs.
You can choose any amount from your basic. Say 30% or 40% and inform to HR for the same to detect and contribute to PF account.
When I was not into trading, I myself was contributing 100% of my BASIC salary into PF/VPF account. I was not investing in any debt/Liquid MFs.
You can choose any amount from your basic. Say 30% or 40% and inform to HR for the same to detect and contribute to PF account.
7/11
Any debt MF will give around 8 to 9% returns and liquid funds around 7%. Debt MFs has some risk of companies defaulting. Further the returns are taxable and has to pay 30% if withdrawn within 3 years and if held for 3 years its 20% after indexation.
Any debt MF will give around 8 to 9% returns and liquid funds around 7%. Debt MFs has some risk of companies defaulting. Further the returns are taxable and has to pay 30% if withdrawn within 3 years and if held for 3 years its 20% after indexation.
8/11
So, the returns will be less in debt MFs after tax.
But PF returns are completely Tax Free & 100% safe.
So, PF/VPF can beat all debt MFs & even some of equity funds.
The beauty part of PF is if you quit and you don't have a job for 60 days, you can withdraw all the money.
So, the returns will be less in debt MFs after tax.
But PF returns are completely Tax Free & 100% safe.
So, PF/VPF can beat all debt MFs & even some of equity funds.
The beauty part of PF is if you quit and you don't have a job for 60 days, you can withdraw all the money.
9/11
Now coming to partial withdrawal part.
PF amount can be withdrawn even when you are in job for different purposes though not recommended.
One of my friend almost withdrawn most of the amount to purchase a land.
Now coming to partial withdrawal part.
PF amount can be withdrawn even when you are in job for different purposes though not recommended.
One of my friend almost withdrawn most of the amount to purchase a land.
10/11
Partial withdrawal can be done for medical emergency, marriage, higher education, house renovation, purchase of land, home loan repayment etc.
So, even in emergency cases you can withdraw the PF amount. Withdrawal process is also simple and completely online.
Partial withdrawal can be done for medical emergency, marriage, higher education, house renovation, purchase of land, home loan repayment etc.
So, even in emergency cases you can withdraw the PF amount. Withdrawal process is also simple and completely online.
11/11
Considering all the above like good interest rate, tax free, partial withdrawal, complete withdrawal if 2 months of unemployment etc, I recommend investing in PF account rather than debt/Liquid MFs.
Please retweet so that max people can know about VPF and get benefitted.
Considering all the above like good interest rate, tax free, partial withdrawal, complete withdrawal if 2 months of unemployment etc, I recommend investing in PF account rather than debt/Liquid MFs.
Please retweet so that max people can know about VPF and get benefitted.
