It is a comparative study between PPF,NSC,NPS and what suits our investor Mr. A's profile.

1. COMPARATIVE STUDY
BETWEEN PPF,NSC,NPS
WITH ILLUSTRATION.
Presented By:
Akriti Bhat
Kiranjot Kaur
Shivani Sharma
Shweta Rai

2. CONTENTS
National Saving Scheme
Features.
Investor’s Profile
National Pension Scheme
Features
Public Provident Fund
Features
Investment Suggestion
Conclusion
Bibliography

3. Public Provident Fund
It is a personal saving and tax-saving instrument.
It was introduced by the National Saving Institute of the Ministry of Finance in
1968.
The purpose of this scheme is to mobilise small savings by offering investment
with reasonable returns in addition to income tax benefit under section 80 C.
This scheme is fully guaranteed by Central Government.
It is risk free investment.
Deduction limit for PPF is 1.5 Lakhs.
Individuals who are residents of India are eligible to open their account under
the Public Provident Fund, and are entitled to tax-free returns.

4. Public Provident Fund Interest Rate is fixed by the Ministry of Finance, Government of India, annually, and at present is 8.0%
compounded annually
The minimum deposit is 500/- and maximum is Rs. 1,50,000/- in a financial year.
One deposit with a minimum amount of Rs.500/- is mandatory in each financial year.
Account can be opened by an individual or a minor through the guardian.
According to Public Provident Fund Scheme 1968, the facility of loan against the PPF deposits is available from 4th to 6th year of
deposit to the extent of 25 % of the amount deposited as at the end of the last financial year. The loan is repayable in 36 months.
There is a lock-in period of 15 years and the money can be withdrawn in whole after its maturity period.
Best for long term investment.

5. FEATURES OF PUBLIC PROVIDENT FUND
01
Interest
02
Tax
Benefit
03
Period of
investment
05
Transferability
04
Opening And
investment limit
06
Loan
Facility
07
Withdrawal
Moratoriums

6. National Saving Scheme
It is part of the
postal saving
system of Indian
Postal Service (India
Post).
National Savings Certificates, popularly known as NSC, is an Indian
Government Saving bond, primarily used for small savings and
Income tax saving investments in India.
These can be purchased from any
Post Office in India by an adult
(either in his/her own name or on
behalf of a minor), a minor, a trust,
and two adults jointly.
These are issued for five and ten year maturity
and can be pledged to banks as collateral for
availing loans.
The holder gets the tax benefit
under Section 80C of Income Tax
Act,1961.
The certificates were heavily
promoted by the Indian
government in the 1950s after
India's independence, to collect
funds for "nation-building.”
Loan is available form banks against
pledge of NSCs in their favour.
NSCs are a long term tax
saving option for investor.

7. The maturity period of
NSCs (VIII Issue)
reduced from 6 years
to 5 years.
Introduced NSC (IX
issue) with maturity
period of 10 years and
higher interest rate of
8.70% per annum with
effect from 01.12.2011.
NSC (IX issue) with
maturity period of 10
years discontinued with
effect from 20th
December 2015.
Interest Rates on NSCs
and other small saving
schemes to be changed
at quarterly intervals.
CHANGES IN THE SCHEME:

8. Features Of
National
Saving
Scheme
ENCASHMENT TRANSFERABILITY
INTEREST RATES
ELIGIBILITY
MAXIMUM AMOUNT
MINIMUM AMOUNT
TAX BENEFITS
INTEREST TAXABILITY

9. National Pension Scheme
National Pension System, also known as NPS, is a
voluntary defined contribution pension system in
India.
The NPS started with the decision of the Government
of India to stop defined benefit pensions for all its
employees who joined after 1 January 2004.
While the scheme was initially designed for
government employees only, it was opened up for all
citizens of India between the age of 18 and 60 in 2009.
In its overall structure NPS is closer to 401(k) plans of the United
States. Administered and regulated by the PFRDA (Based on the
recommendations of Chakka Muni Balaji Ganesh Committee),in
accordance with (Juturu Sahithi committee) it is a quasi-EET
(Exempt-Exempt-Taxable) (Based on the recommendations of Juturu
Sahithi Committee) instrument in India where 40% of the corpus
escapes tax at maturity, while 60% of the corpus is taxable.

10. Of the 60% taxable corpus, 40% has to be
compulsorily used to purchase
an annuity.
Contributions to NPS receive tax
exemptions under Section 80C, Section
80CCC and Section 80CCD(1) of Income
Tax Act.
Starting from 2016, an additional tax benefit
of Rs 50,000 under Section 80CCD(1b) is
provided under NPS, which is over the Rs
1.5 lakh exemption of Section 80C. Private
Fund managers are important parts of NPS.
NPS is considered one of the best tax saving
instruments, after 40% of the corpus was
made tax-free at the time of maturity and it
is ranked just below Equity-linked savings
scheme.

11. Features Of
National Pension
Scheme
Low cost of investment
Flexible
Online Access Returns Regulated Tax
Incentives

12. Mr. A’s (Investor) Profile
Age 35 Years
Dependents Father
Mother
Wife
2 Children
Income 70,000/- Per month
Risk profile Moderate
Expenses:
Medical Expense
Household Expenses
School And Tuition Fee
5,000/- Per month
25,000/- Per month
10,000/- Per month
Savings 30,000/- Per month

13. Investment of Savings Rs. 30,000/-
Public Provident Fund
We would suggest him to invest 10,000 per month in PPF
National Saving Scheme
We would suggest him to invest 10,000 per month in NSS
National Pension Scheme
We would suggest him to invest 10,000 per month in NPS03
02
01

14. Conclusion
Because both retirement saving options NSC and PPF are risk free as these are provided by government
and NPS is providing a really good option for saving tax and equally good options for long term
investment. Also the rate of interest are approximately same. Therefore, we have provided these in the
breakup of same equal amount.
Comparatively National Saving Scheme is the most attractive option if the main focus is to save tax Also
Public Provident Fund is also good to save tax. Both NSC and PPF are good considering that these are
eligible for 80C deductions
Retirement Saving Options RETURNS LOCK IN PERIOD RISK
Public Provident Fund Return at 8.0% Lock-in-period of 15 years Risk free as they are
backed by the government
National Saving Scheme Return is 8.0% Lock in period of 5 years Risk free as they are
backed by the government
National Pension Scheme Returns between 8% to
10%
Lock-in-period till
retirement
Is affected by market
related risks

15. Bibliography
Dailytools
Finotax
Ndtv profile
Myloancare.in