New Delhi, July 7 -- Planning for long-term financial goals or retirement, the employees provident fund (EPF) and voluntary provident fund (VPF) are reliable and safe tools at the disposal of a conservative investor looking for consistent long-term returns. As government-backed savings schemes with generally high rate of interest and tax-free payout, the EPF and VPF are effective investment tools.

EPF and VPF offer 8.25% interest in FY26, but EPF contributions are mandated for employee and employers. On the other hand, VPF is a non-compulsory add-on over and above EPF which allows maximum contribution of up to 100% of basic pay and dearness allowance.

Notably, both also have tax-benefit with annual contributions up to Rs.1.5 lakh being ...