EPF and PPF are cases of classic asset class mismatch – they are savings tools which are implemented for the long term. So technically they are not ideal investment avenues. However as a salaried person, one does not have an option not to invest in EPF. One could make withdrawals for suitable alternative investments if… Read More »
ULIPs basically work like a mutual fund with a life cover thrown in. They invest the premium in market-linked instruments like stocks, corporate bonds and government securities. Investments in ULIPs attract tax benefits under Section 80C. The returns and the lock-in period depend on the plan chosen.
Tax treatment is where the PPF scores very high. The PPF comes under the Exempt- Exempt- Exempt category. This means that the amount invested gets tax benefits, the interest is not taxed and so is the final maturity amount. The investment gets benefits under Section 80C of the IT Act. The investment however is limited… Read More »