Picking The Right Fund

When it comes to financial security, traditional savings instruments like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF) are popular tax-saving retirement plans. Despite falling rates of interest, these two schemes have been around for more than six decades. Both are long-drawn, but secure investment choices. But how many invest in the other government fund - Voluntary Provident Fund (VPF)? For many years, Prunita Thingujam, who works with navigation map company Mapmyindia in New Delhi, has been investing in EPF. By investing in EPF, the 28-year-old saves 12 per cent of her basic and dearness allowance every month, to which her employer makes a matching contribution of 12 per cent. “EPF is the easiest and best option,” she says. But as interest rates in EPF are falling, Thingujam is now looking for a better alternative. “I am planning to switch...