ppf Vs NPS

POSTED BY prasoon ON October 22, 2010 9:27 pm COMMENTS (8)


i m confused whether to go for ppf or nps?

i m already investing thro sip in mfs and want debt option to balance my portfolio.

i m contributing thro epf also  ,but planning to start own business in near future.

thanks in advance

8 replies on this article “ppf Vs NPS”

  1. Ramesh says:

    Better to go with debt funds.
    Not FMPs. Not PPF / NPS.

    You already have got EPF contributions.

    And since you are going to ‘start’ a business, i would suggest you have a high liquidity of your funds, in case you require them.

    Presently, go for dynamic bond funds (will take care of both long-term/short term fluctuations of the interest rates, without bothering you much). since, you should be concentrating more on the upcoming ‘business’ proposal, and not on managing your money.


  2. Rajesh says:

    Dear Dr Prasoon Anand,

    I will try to address the question relating to the debt part of your portfolio as you already seem to have got some inputs on the nps v/s ppf question.

    I have been personally encouraging my friends and family to make use of the high yields in the debt market – by which I mean, the situation today is that money is scarce and the banks are borrowing from the RBI. This causes daily rates (read money even for overnight use) costly! I hope you will get insights if you read this article from my research team…


    Along with this, if you find time to read more on fixed income investing, please have a look at this link too… http://bit.ly/eH10po

    Happy to address any queries you may have.

    Happy informed investing!

  3. prabeesh says:

    If its purely for retirement and you dont need that money anytime soon.I would say to opt for VPF which will give you 8.5% returns without tax(ie considering under 80c less than 1 lakh as of now)

  4. jitendra solanki says:

    Both The options are good.

    PPF is a 100% debt investment with assured ROI whereas in NPS you have option of going with 50% equity but no assured returns.

    In both options contribution varies.But PPF matures after 15 years whereas NPS corpus is given in the form of annuities.

    Since you already are having SIPs in Equity Funds,Invest in PPF.

    1. anand says:

      thanka a lot ,jitendra

  5. NPS is a retirement solution , you will be able to get your money in form of pension through NPS , even in PPF you will be able to get most of your money only after 10 yrs , so if your time horizon is short like 3-4 yrs , better put in debt fund .


    1. anand says:

      Hi manish
      recently i started visiting your website. it is amazing that at such a young age,u have acquired vast knowledge on such a complicated matter. best part is that you are so keen on sharing knowlegde and benefiting the society. how come u r able to manage so ?
      u r truely god gifted.
      thanks and lots of good wishes.
      dr prasoon anand

      1. Anand

        Thanks . Now its my fulltime job 🙂 , so i have to manage it and its my passion also 🙂

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