Exploring Long-Term Investments: Insights from Someshwar Srivastava 

Long-Term Investments

Exploring Long-Term Investments: Insights from Someshwar Srivastava 

When it comes to ensuring a secure financial future, planning for long-term investment is key. Various options exist for this, such as the National Pension Scheme (NPS), Public Provident Fund (PPF), and Voluntary Provident Fund (VPF). With the help of financial analyst Someshwar Srivastava, we’ll delve into each of these investment avenues and provide guidance to help make your decision smoother. 

Understanding Long-Term Investment 

Long-term investment involves channeling funds into avenues that are likely to grow and give returns over an extended period, often spanning over years or decades. The goal here is to benefit from the growth and increase of assets over time to achieve crucial financial milestones like retirement, buying a house, or funding your child’s education. 

Investors following this strategy tend to hold on to their investments irrespective of the market’s ups and downs, hoping to gain from the compounded returns. The idea is to leverage the progress of time and market growth to build wealth and ensure financial security for the future. 

The schemes we will explore include the National Pension Scheme (NPS), Public Provident Fund (PPF), and Voluntary Provident Fund (VPF). 

National Pension Scheme (NPS) 

The National Pension Scheme (NPS) is a government-initiated, retirement-focused savings plan that encourages regular savings for retirement. It offers flexibility by investing in diverse asset classes including equities, government securities, and corporate bonds. 

NPS not only provides growth potential and security but also offers tax benefits. But remember, although it allows partial withdrawals after a fixed period, it’s primarily aimed at retirement planning. 

Public Provident Fund (PPF) 

The Public Provident Fund (PPF) is a government-endorsed savings scheme highly regarded for its safety and tax benefits. It’s a perfect choice for those investors who prefer a secure, long-term savings road with fixed returns. 

Not only does PPF give you tax advantages, but it also allows partial withdrawals after the completion of a particular period, offering a handy avenue for when finances are tight. 

Voluntary Provident Fund (VPF) 

The Voluntary Provident Fund (VPF) is an optional extension of the Employee Provident Fund (EPF) which allows employees to contribute more than the compulsory 12% of their basic salary towards their EPF account. 

It’s a useful scheme for salaried folks looking to save in a tax-efficient, long-term manner. The contributions and interest earned in the VPF are tax-free, making it a reliable and disciplined, long-term savings path. 

Making the Decision 

Choosing between NPS, PPF, or VPF for your long-term investments depends on your personal financial goals, how comfortable you are with risk, and the time frame in question. 

When looking at returns, NPS potentially offers higher ones due to its exposure to equities, but these are linked to market performance. PPF and VPF offer fixed returns, with the former providing a safe but long-term option, and the latter suitable for those seeking secure, long-term savings. 

From a tax point of view, all three schemes provide benefits, with NPS offering an advantageous position throughout, and PPF and VPF also eyeing tax-efficiency earnestly. 

In terms of liquidity, all three enable some form of withdrawal, with NPS having a longer lock-in period, PPF allowing partial withdrawals after the 7th year, and VPF offering a comfortable sense of liquidity due to its similarity with EPF. 

Final Thoughts 

Choosing the best long-term investment option out of NPS, PPF, or VPF depends on your financial status, risk tolerance, and long-term goals. Your decision should ideally align with these factors. 

Professionals like Someshwar Srivastava can provide valuable insights to help align your investments with your financial goals. It’s essential to evaluate each investment avenue based on its potential returns, tax benefits, and liquidity options before taking the plunge. 

One Comments “Exploring Long-Term Investments: Insights from Someshwar Srivastava 

Comments are closed.