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Employee Provident Fund vs Self-managed Investment

I recently switched job, and now in my new organisation i have two options. And in both cases my contribution will be matched by my employer. –

(1) Opt for Min. Provident Fund (EPF) deduction and increase my montly take home salary

(2) Opt for Max PF deduction (12% of Basic Salary)

Is it a good idea to go for Option 1 and invest the difference in a diversified Mutual Fund. Also, assuming that I stick here for 3 yrs, what is the kind of return that is expected ?

 

Thanks

Ashutosh

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