Which is better option for long term ? EPF or PPF ?

POSTED BY Jay ON February 23, 2014 8:36 pm COMMENTS (17)


I am planning to invest 5000pm. I have option in my present company to increase PF amount. Which is best and wise option. Increase PF amount in EPF or open new PPF.

my EPF account is 4.10 year old. After 5 year there is liquidity in EPF for emergency. But in PPF i have to wait for another 5 year to get liquidity. I know EPF and PPF is meant for long term purpose.

Please advice.


17 replies on this article “Which is better option for long term ? EPF or PPF ?”

  1. idi.vijai@gmail.com says:


    I have withdrawn pf balance with out knowing that the amount is taxable if i withdraw the money before 5 years of service. Kindly help to know if there is a way if i can reinvest the money back to pfo to ensure i get taxable for the money which i with draw.

    I have spent 3.5 years in my previous company and have saved lot of hard earned money and now my previous company HR misguided asking me to withdraw inspite of transferring it. Is there a way out here. I just received the PF amount today and i have joined new company 3 months back.



  2. ashalanshu says:

    Dear Jay, for retirement planning, please use debt as well as Eq. For debt, you may opt EPF and PPF for Eq. please opt MFs.



  3. Jay says:

    Hello Ashal,

    Waiting for your advice on EPF or PPF, my goal is retirement in 2031.

  4. Jay says:

    Dear Ashal,
    appreciate your advice

  5. ashalanshu says:

    Dear Jay, 30000 rs. mly investment means investing 360000 Rs. yly. So in 5Y, your basic investment ‘ll be 2100000 Rs. Now how can you expect to purchase 45L Rs. land from this 2100000 Rs. + some return (interest on your investment)? Your answer please.



  6. Jay says:

    Land purchase costing 30 laks now. Thinking 35-40 laks in 5 year

  7. ashalanshu says:

    Dear Jay, Goal? What ‘ll be the end use of the money? Your return expectation?



  8. Jay says:

    Dear Ashal,

    5 year

  9. ashalanshu says:

    Dear Jay, goal, time frame, your return expectation for this 30000 Rs, amount.



  10. Jay says:

    Dear Ashal,
    If I can find 30000pm to invest what would be the best option.
    Anyway 5000pm i want to put in EPF or PPF

  11. ashalanshu says:

    Dear, why are you focusing on EPF or PPF only for 2y time requirement?



  12. jayan.nair@ymail.com says:

    not much, so I can consider epf withdraw after 10 year only.
    In this case which is the best option invest 5000pm, in EPF or PPF

  13. ashalanshu says:

    Dear Jayan, if you are planning to withdraw from EPF? How much can you withdraw after 2Y from here onwards?



  14. jayan.nair@ymail.com says:

    Dear Ashal,
    I can arrange upto 5 lakh and remaining in loan
    Also i am thinking about take some advance from EPF.

  15. ashalanshu says:

    Dear Jayan, how ‘ll you manage 30L Rs. in next 2Y? I mean how much loan, how much from self resources?



  16. jayan.nair@ymail.com says:

    Dear Ashal,
    My ultimate goal is long term, but I have plan to buy family property in another 2 year which costs 3o lakh.

    As of now I dont have any FD and recently I am investing 6000pm in mutual funds.
    My plan add 4000 pm more in MF and 5000pm in EPF or PPF
    I have only 4 lakh lic policy
    Please advice.

  17. ashalanshu says:

    Dear Jayan, what do you want to do with this money and when?

    I mean your goal and time frame?



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