Hot Deal ppf alternatives

321°
Deal Cadet
50
295
3
ppf alternatives

Friends what are good alternatives  for ppf accounts (they will only get 6.4% interest now, inflation  rate is same) to avail 80c limit? elss funds? Can u please explain them?
Biki bhaiya please tag all financial experts @bikidas2060 @Maverickz @Bk100 @Sudarshan61 @guest_999 @ramadesidime

81 Comments  |  
14 Dimers
  • Sort By
50
458
6

Electoral Bonds!
if the money reaches the right wrong politicians, it comes back to you manifold.

253
2686
10

I think that PPF is still the best for EEE and lowest risk investment apart from VPF for working / salaried individuals.

665
4851
55

For anyone less than 50 years in age ELSS is the best option for availing 80c deduction.

50
528
8

There is no alternative to PPF as such other than GPF, EPF and VPF. This is exclusively debt component, back by the Govt. of India and after the last budget announcement, now remains (so far) total E-E-E, whereas ELSS redemption is now taxable beyond 1L/year profit. The interest rate will go down. My main reason for investing in it is that, at present, this is the only scheme (apart from NPS) which enables me to build a retirement corpus & thinking ahead, the “pension” withdrawn would be totally tax free – If you see PPF as a pension/retirement corpus. There is a lock in of 15 years on an yearly reducing mode & you can keep extending till you are on Earth mode

But that’s just my outlook.

50
838
6

Sadly no alternative to PPF.

But yes one can look for other options like ELSS, NSP, certain bank FDs(interest is taxed and many small banks still have higher interest rates)..

50
143
4
Ramta_Jogi wrote:

There is no alternative to PPF as such other than GPF, EPF and VPF. This is exclusively debt component, back by the Govt. of India and after the last budget announcement, now remains (so far) total E-E-E, whereas ELSS redemption is now taxable beyond 1L/year profit. The interest rate will go down. My main reason for investing in it is that this, at present, is the only scheme (apart from NPS) which enable me to build a retirement corpus & thinking ahead, the “pension” withdrawn would be totally tax free – If you see PPF as a pension/retirement corpus. There is a lock in of 15 years on an yearly reducing mode & you can keep extending till you are on Earth mode

But that’s just my outlook.

Is it completely withdrawable after lock in period complete?
With NPS/EPF only a a max limit can be withdrawn even at retirement.(For NPS i think if total amount is upto 2L it is fully withdrawable at 60)

50
528
8
Expand
raman12 wrote:

Is it completely withdrawable after lock in period complete?
With NPS/EPF only a a max limit can be withdrawn even at retirement.(For NPS i think if total amount is upto 2L it is fully withdrawable at 60)

Yes, it is completely withdraw-able after lock in period however, it is advised not to.
Extension can be of 5 years block each while if you close old PPF and open new PPF, you’ll need to wait another 15 years.
You can also take loan against it at 1% interest rate
You can get a loan from the third year and till the sixth year after opening the PPF
The amount of loan is limited to 25% of the balance that stood in the PPF
After the 15th year, you can maintain the account with or without making investments.
Interest will continue to be accrued on the balance till it is closed.
Premature withdrawals are allowed after the completion of five years
The amount that you can withdraw is capped at the lower of the two – 50% of the balance at the end of the fourth financial year or 50% of the balance at the end of the preceding year.

I expect NPS rules & regulations to evolve over time. Maybe the entire corpus is declared withdrawable and tax free by the time some of us actually retire

50
295
3
Maverickz wrote:

I think that PPF is still the best for EEE and lowest risk investment apart from VPF for working / salaried individuals.

Any other EEE instrument? Is elss eee?

50
295
3
guest_999 wrote:

For anyone less than 50 years in age ELSS is the best option for availing 80c deduction.

Is elss eee?

50
295
3
Ramta_Jogi wrote:

There is no alternative to PPF as such other than GPF, EPF and VPF. This is exclusively debt component, back by the Govt. of India and after the last budget announcement, now remains (so far) total E-E-E, whereas ELSS redemption is now taxable beyond 1L/year profit. The interest rate will go down. My main reason for investing in it is that, at present, this is the only scheme (apart from NPS) which enables me to build a retirement corpus & thinking ahead, the “pension” withdrawn would be totally tax free – If you see PPF as a pension/retirement corpus. There is a lock in of 15 years on an yearly reducing mode & you can keep extending till you are on Earth mode

But that’s just my outlook.

But sirg what corpus can u expect with 6.4%? Inflation rate is almost similar.

50
295
3
Expand
Ramta_Jogi wrote:

Yes, it is completely withdraw-able after lock in period however, it is advised not to.
Extension can be of 5 years block each while if you close old PPF and open new PPF, you’ll need to wait another 15 years.
You can also take loan against it at 1% interest rate
You can get a loan from the third year and till the sixth year after opening the PPF
The amount of loan is limited to 25% of the balance that stood in the PPF
After the 15th year, you can maintain the account with or without making investments.
Interest will continue to be accrued on the balance till it is closed.
Premature withdrawals are allowed after the completion of five years
The amount that you can withdraw is capped at the lower of the two – 50% of the balance at the end of the fourth financial year or 50% of the balance at the end of the preceding year.

I expect NPS rules & regulations to evolve over time. Maybe the entire corpus is declared withdrawable and tax free by the time some of us actually retire

sirg 1 swal agar ppf mein 1 saal mein kuch bhi credit na karo to vo block ho jaata ha account?

50
528
8
Expand
kukdookoo wrote:

But sirg what corpus can u expect with 6.4%? Inflation rate is almost similar.

Approx 1.5 crore
Tax free
Do name 1 more EEE scheme

59
1048
9
Expand
kukdookoo wrote:

matlab

meaning that the amount you invest will be exempt under 80c but the returns exceeding Rs 1 lakh a year will be taxable at prevailing rates for LTCG (10% as of now)

50
528
8
Expand
kukdookoo wrote:

sirg 1 swal agar ppf mein 1 saal mein kuch bhi credit na karo to vo block ho jaata ha account?

Minimum amount of 500 per year to be deposited to keep it active

50
528
8
Expand
kukdookoo wrote:

But sirg what corpus can u expect with 6.4%? Inflation rate is almost similar.

Even at 5 percent per annum, yearly amount of 1,50,000 becomes 1.5 crore at the end of 35 years.
I expect ppf limit to be increased in the coming years.

50
295
3
Expand
Ramta_Jogi wrote:

Minimum amount of 500 per year to be deposited to keep it active

If it goes inactive then no interest for that year as well?

50
295
3
Expand
Ramta_Jogi wrote:

Even at 5 percent per annum, yearly amount of 1,50,000 becomes 1.5 crore at the end of 35 years.
I expect ppf limit to be increased in the coming years.

I expect ppf limit to be increased in the coming years.
mushkil ha bhai 1 bar decrease ho to increase hona mushkil ha especially with this sarkar
https://stableinvestor.com/2016/08/ppf-interest...
they will decrease it after elections.
1 question any other EEE instrument?

50
295
3
Expand
Snikeus wrote:

meaning that the amount you invest will be exempt under 80c but the returns exceeding Rs 1 lakh a year will be taxable at prevailing rates for LTCG (10% as of now)

LTCG as per equity funds? Can you please share more details about elss funds?

50
528
8
Expand
kukdookoo wrote:

I expect ppf limit to be increased in the coming years.
mushkil ha bhai 1 bar decrease ho to increase hona mushkil ha especially with this sarkar
https://stableinvestor.com/2016/08/ppf-interest...
they will decrease it after elections.
1 question any other EEE instrument?

PPF limit kabhi decrease nahi hua hai. Increase hi hua, first 70K then 1L and nowadays 1.5L

230
1831
9

Now government rather than doing something for ECONOMY is totally focussed on 1 April. Btw it feels everyday is 1 April, govt taking decision, rolling back and forth, rollercoaster ride.

50
528
8
Expand
kukdookoo wrote:

If it goes inactive then no interest for that year as well?

The amount in a PPF account continues to earn interest even while it is inactive.

18
1135
36

ELSS return could be tax free, if you know the concept of mutual fund tax harvesting. youtube it.

Missing