Any person who does a job deposits a part of his salary in the Provident Fund i.e. PF account. This PF is the future savings for any salary earner. After retirement, that person gets the Piri money of PF. Apart from this, you can also take a loan against PF money if needed. If an account holder dies during the job, then the nominee gets the PF money.
Mode of Investing in Provident Fund-
Apart from investing money in PF, you have another option to invest. This is Voluntary Provident Fund. The modus operandi of investing in Voluntary Provident Fund is different from that of investing in Provident Fund (EPF). This way of investing in PF money is that 12 -12 percent of your salary is deposited in PF every month. In this, a part of 12 percent is deducted from the salary of the person doing the job. While the other 12 percent is given by the company providing the job. This scheme is called Employee Pension Scheme.
Method of Investing in
Voluntary Provident Fund- Whereas, to invest in Voluntary Provident Fund, you have to give 100% share yourself. In this the company’s share does not become even one percent. Before investing in Voluntary Provident Fund, you should talk to the HR of the company. After getting the permission of the company, you can start investing. After this, you Provident Fund i.e. EPF will be linked by taking Voluntary Provident Fund i.e. VPF account. After that you can start investing.
The special thing about this scheme is that you can invest in it from the beginning of the financial year. Like you can invest in it from April this year. Keep in mind that you can decide the amount to invest in it according to your need.
