Is It Better To Invest In These 4 Alternatives To EPF? 🤑

Kasa kay buddy?

I’ve missed writing to you so very much, and I am super excited for you to read this mailer. But this time around, I promise to pop up in your inbox a lot more, pucca! It feels great to be back in the grind and this edition has to be one of my favorites because the tip in the end is just 🤌🏼✨

What I was up to:  I’ve been away from a good part of work for the past few months (since I’ve had my hands full with my lil munchkin), apart from creating content with Sayali, of course. Speaking of Sayali, she’s been terribly sick for the past few days and I really hope she gets better. Please send her loads of love and wishes to get back on her feet! I am now playing catch up slowly but steadily and while I was at it, one person in our team who works with us on a freelance basis asked me a monumental question about alternatives to EPF🫣😱, and I think many of you might be doubtful of it too! (Scroll, scroll! 😅😅🤫)

Market ka haal: Our equity market has been on a roll! This week we saw it rise maintaining a 3-week streak on the green with Sensex & Nifty closing at record-high levels yet again, gaining over 1.2% over the week. This was essentially a result of positive global cues, and consistent investments by Foreign Institutional Investors (FIIS) have contributed significantly as well, putting India at the top positions in terms of growth prospects.

Although tomatoes bagged the limelight of inflated prices last week, fuel, food, and other manufactured items don't seem to be far behind now. Legend has it that the dealers of fresh produce and grocery have stocked up to arrest supply and inflate prices but a report on Moneycontrol clarified that it's due to incessant rainfall in some parts of the country. The situation has adversely affected the production and transportation of this essential kitchen commodity, and prices are expected to rise over the coming weeks.

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Humara Gyaan: Employee Provident Fund is a social security scheme implemented to help employees save a portion of their salary to build a financial safety net for their retirement. But it can be a lot of things: a fund stashed away for covering you during unemployment, to fuel your wanderlust, for familial commitments, and whatnot!

For self-employed professionals, freelancers, and creators, navigating the path to diligently chip away money can seem daunting without the safety net of an employer-sponsored plan. Don't fret just yet, I've brought to you:

Four viable alternatives to EPF 🚀💰

🤑 Public Provident Fund (PPF): PPF is one of the most popular and tax-efficient long-term savings options in India. It offers tax deductions on contributions and tax-free interest earnings. Self-employed individuals can open a PPF account and contribute a maximum of Rs. 1.5 lakh per financial year. The maturity period is 15 years, but partial withdrawals and extensions are possible under certain conditions.

🤑 National Pension System (NPS): NPS is a government-sponsored pension scheme that allows self-employed individuals to contribute regularly towards their retirement. It offers two types of accounts: Tier-I (strictly for retirement savings, with withdrawal restrictions) and Tier-II (more flexible, with no additional tax benefits). NPS provides tax benefits on contributions and allows asset allocation choices for investments. An additional deduction for investments up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers over and above claiming other tax deductions.

🤑 Sovereign Gold Bonds (SGBs): For individuals interested in diversifying their portfolio, SGBs issued by the government allow investment in gold without physical ownership. SGBs have a fixed tenure of 8 years with exit options after the fifth year. The government also gives a fixed rate of interest of 2.5% annually (paid semi-annually) on the investment amount till maturity.

🤑 Tax-saving Fixed Deposits: Some banks offer tax-saving fixed deposits with a lock-in period of 5 years that provide tax benefits under Section 80C of the Income Tax Act. The current FD interest rates are through the roof and that aside, the interest rates for FDs made for 5-10 years are anyway a lot higher than they are for shorter tenures.

Whether you're self-employed, a freelancer, an aspiring creator, or a soloprenuer, there's a world of exciting financial options beyond the traditional norm. Embrace the fun, adventurous, and forward-thinking funds that align with your dreams and goals. With a dash of creativity and a sprinkle of discipline, you can conquer your financial journey and pave the way to a prosperous and fulfilling future.

Happy saving and investing! 🌟💰

Niyati ♥

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