Provident funds (PPF)
Provident fund is a government-managed retirement savings scheme for employees who can contribute a part of their pension fund every month. These monthly savings get accumulated every month, easily accessible as a lump sum amount at retirement or the end of employment. It helps in saving money for the long run. With the arrival of ELSS (Equity Linked Savings Scheme) it has taken a direct hit, for those who understand the difference and have the discipline to adhere to an SIP are recommended to look compare ELSS with PPF. If one feels he/she does not have the discipline of adhering to a Systematic Investment, then they should definitely opt for this Government imposed SIP to discipline oneself in a few years’ time. Since compared to it’s other counterpart it comes practically under the AARVIA’s long term savings catalogue.