Why EPF is the Best Fixed Income Asset
EPF provides an incredible combination of high interest (currently 8.25%), sovereign guarantee (backed by Govt of India), and EEE tax status.
- Exempt-Exempt-Exempt (EEE): The money you invest is tax-free (under 80C), the interest earned is tax-free, and the final withdrawal at retirement is 100% tax-free. No other instrument in India provides this.
- VPF (Voluntary Provident Fund): If you want to invest more than the mandatory 12%, you can opt for VPF. VPF gives you the exact same 8.25% tax-free return (up to an annual contribution limit of ₹2.5 Lakhs).