EPF or PPF - Which one should you invest in?

What is the difference between EPF and PPF?

Should you invest in them?

How much % of your investment should go there?

Friends, since a lot of you have been asking for the differences and utility of EPFs and PPFs, this video is my take on those!

We will talk everything about:
- Whether you are eligible for them
- When can you withdraw the amount
- Risk involved
- Amount of contribution in each
- And my recommendation for investing in them

And if you are in your 20’s, I share some valuable advice for you towards the end which you will be able to understand only if you understand the entire video.

Hope this helps!

How to understand your salary slip, here is the video that will help you:

Here’s how partial withdrawal of PPF works, from 7th to 15th year:
- Only one partial withdrawal will be allowed every financial year (starting from the 7th financial year onwards)
- The amount that can be withdrawn is equal to the lower of:
50% of the PPF account balance as at the end of the year immediately preceding the current year, or,
50% of the account balance as at the end of the 4th year, immediately preceding the current year.

You can a PPF account using these links:

#warikoo #epf #ppf

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Ankur Warikoo is an entrepreneur, an angel investor, a mentor and an active public speaker.
For the past 4 years, Warikoo has been actively sharing content on YouTube, LinkedIn, Instagram, Facebook and Twitter amassing a following of 3 Million+ people.
He posts 3 Hindi and English videos every week on his YouTube channel, where he talks about entrepreneurship, how to grow in life, personal finance and failure.

Prior to that, Ankur started Groupon’s India business in 2011 and acted as the Country CEO from 2011-15, and Head of Groupon APAC from 2013-15.

An alumnus of the Indian School of Business, Ankur is an active Angel investor and mentor to several startups.

Ankur has been part of Fortune Magazine’s 40 under 40 List for India, LinkedIn India’s PowerProfiles List, LinkedIn India’s Spotlight List and India’s Top Executives under 40 list.

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My bestselling books:

My gear for shooting this video:

Useful links:

The above links are on Amazon.
If you buy any of these using the above links, I stand to make affiliate income from it. 100% of this income is contributed towards the education of kids who cannot afford it. In 2021 we contributed 38L and in 2022 we contributed 53L.

Let’s connect online:

[warikoo]

Here’s how partial withdrawal of PPF works, from 7th to 15th year:
- Only one partial withdrawal will be allowed every financial year (starting from the 7th financial year onwards)
- The amount that can be withdrawn is equal to the lower of:
50% of the PPF account balance as at the end of the year immediately preceding the current year, or,
50% of the account balance as at the end of the 4th year, immediately preceding the current year.


You can a PPF account using these links:

[praneethenaganti]

There is one more option in EPF, VPF (voluntary provident fund) - you can invest more than the 12% mandate of your basic pay, that means you can invest the rest of 88% too which will also add to 8.5% compound interest every year. Taking the same example in the video, you can invest the entire 20, 000 rupees of your basic pay, but any interest earned on EPF/VPF contribution above 2.5 lakhs per annum is again taxable. Good video with all the details.

[supriyomondal]

Two more points about PPF I thought about mentioning

1. In case of debt /loan related recovery, PPF account will be untouched by any organisation.
2. If you are doing sip for PPF, better to submit the money before 5th of every month in order to get interest of that current month.

[ANKITCHOUDHARYankitkrchy]

This man is actually doing a social service. Appreciate for the financial advices

[AKYsupport]

सर, आपका वीडियो बहुत ही इंटरेस्टिंग और ज्ञानवर्धक है। सर, आपका बहुत-बहुत शुक्रिया!

[harshildoshi]

I think one thing Ankur sir missed is that a portion of your EPF goes to EPS (Employee Pension Scheme) which cannot be withdrawn. Also, those partial withdrawal rules are also there for EPF & not just for PPF, AFAIK.

[RBVijeyShankar]

I would have been impressed if you had covered one more point in EPF. The amount contributed by employer does not go entirely to the EPF. It is split into EPF and Pension account.
Everyone projects PPF is too big. But EPF is hard than that. EPF is till age of 60 and in the GenZ you don't expect many people(obviously due to the major population) to work till 60 which has to be clarified. PPF is relatively very less at 15 years.

[vigneshacharya]

Love the way you make finance education so simple that even a layman can understand.
More power and more success!

[tintiniitk]

0:24 "Switch to 1.5x for better experience". He isn't joking (lol) ... Try it. I loved it. I'm gonna try out his other videos in 1.5x too now.

3:17 minor correction.. Ankur said that whatever you contribute or your company contributes would be deductible under section 80c. Actually, whatever the company contributes is outside the purview of your gross salary altogether i.e. fully tax-free, so it doesn't eat up to into your 1.5 lakh 80c limit, only employee's contribution up to 1.5 lakh is deductible under 80c.

[LearnWithAsalam]

Thanks for the explanation all these explanations there are Two catch points which need to correction-
1- only Employee contributions are come under 80c.
2-Now from this financial year a small correction related to tax on employees contributions. Now onward If Employee contributions are more than 2.5 L then till 2.5 L no tax and the above amounts will be taxble on EPF.

[roxforlife]

Love your videos
Apart from knowledge
It give me Good vibes always

[manishmehrotra]

Ma Disciplined Investing ka AASHIQ Hu, Really Epic Ankur 😜 😜

[shubhamathalye]

Sir there is one correction only employee contribution comes under 80c. Not combined amount comes under 80c. For employer contribution there is separate limit.

[taylorlee]

Things are getting worse, it's so bad that having a job doesn't mean financial security

[TiMon-Experience]

EPF is better than FD as it is pre tax money also and compounding is lot higher. It also is tax free as you mentioned
Good option for many of us... 👍🏻

[ansumanswain]

Please make a video on how to study abroad. As you're well experienced!

[MrShubhLabh]

I have invested in both EPF and PPF. I am a regular viewer of your classes. You make us understand so clearly and easily. Request you to please differentiate between NPS and APY and which one is better? Can I invest in both for long term planning?

Regards
Shubhendra

[suhasvarna]

Hi Ankur
One more small additional information in ppf.
An indian who has already opened a ppf account before becoming an NRI can still continue to hold and invest in his / her ppf account till the completion of initial 15 years period
But the account cannot be extended further after completion of 15 years and he has to close the account but cannot take the money abroad.

Many banks asks NRI to close the ppf account but it is wrong he/she can continue to hold and invest in account if he/she wishes

Above information based on personal experience.

[TheFoodieflightpurser]

Hi sir
Could you please make a video on gratuity... What it is??
How can we claim it??

When do we get eligible for it???

Thank you 😊
God bless

[abhaydubey]

Akshat and Ankur are brothers who got separated in Kumbh mela long back ago.. And now some one who wants them to get back together is helping them by giving same content to make videos🤣🤣.