Hello Changemakers!

Recap
Fintech and Financial Inclusion

Financial literacy refers to knowledge

required to make sound financial
decisions and manage money wisely
in order to meet a person’s needs and
wants. It has a major effect on a
person’s standard of living (and in
turn their family’s) and how they plan
for the future.

Money management includes

budgeting, saving, investing,
planning for the future or for
retirement, planning for major life
events such as marriage, maximising
your income, tax planning, etc.
 Financial Inclusion / Economic Equity

What are our expected outcomes?

● Supporting women in rebuilding their lives with simple
saving instruments.
● Creating a culture of knowledge sharing, with peers
educating each other about financial matters.
● Enhanced resilience and financial independence for
women through effective saving and investment strategies.
● Increased economic opportunities and financial
empowerment for previously unbanked individuals,
contributing to gender equality and reducing inequalities.
 Last Class’s Homework

1. Name of your project/ group

2. What will you achieve?
3. How will you achieve it? List 3 Activities
4. What will be the results of your project?
1
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Lets jump in!
Breakout room activity
1. How can we make online classes engaging - virtual field work ?

3 steps
3 Do’s and 3 Don’ts
Preparing for a Workshop

Body Language

- Keep your camera on & avoid distractions

Content

- Look up a few sites to be well-prepared with your content

- Keep minimum text on the slide

Presentation

- Acknowledge the audience

- Use check-in questions
2. About Donate An Hour
Age group: 13-16 years

Languages Spoken: Hinglish

3. Ready for prep?
 Agenda

Today’s session is about comparing 2 investment tools, PPF

& NPS, let’s think about the outcomes of this session.

It can be, supporting the beneficiaries in rebuilding their

lives with simple saving instruments.

We achieve this by,

Moving beyond mere dissemination of information, and

work to drive behavioral change by sharing practical
information on investing tools.
The concepts

PPF
NPS
Comparing PPF vs. NPS for Maximum Growth
Exploring Features, Benefits, and Drawbacks
 Agenda

1. Comparing PPF(Public Provident Fund) and NPS(National

Pension Scheme)
2. Understanding key features and benefits of both
3. Analysing which of the two saving options are better for
investment and retirement planning
 Imagine this!

You've got a good amount of cash, and you need to make it grow. Where should you put it
for maximum growth?
Features of National Pension Scheme(NPS)

● NPS is not a fixed return instrument.

● Regulated by the PFRDA (Pension Fund Regulatory and
Development Authority).
● Potential for higher returns (9%-12%).
● Tax deduction of up to Rs.1.5 lakh under Section 80C.
● Allows withdrawal of up to 25% of total contributions.
● Option to buy an annuity for a regular pension at 60.
 Features of Public Provident Fund(PPF)

● PPF offers fixed returns set by the government.

● Carries minimal risk.
● Current fixed return rate is 7.1%.
● Tax deduction of up to Rs.2 lakh under Section
80CCD.
● Withdrawals allowed after 15 years with limited
access after the 7th year.
● No annuity option.
 Let us Compare the Features: NPS vs. PPF
NPS PPS
NPS is not a fixed return instrument and is regulated by the PFRDA. PPF has fixed returns which the government sets. Hence, it carries
almost no risk.

NPS has a strong potential to give higher returns (9%-12%). PPF has a fixed return rate, which is set every quarter. Currently, it’s
at 7.1%.

You can claim a deduction of up to Rs.1.5 lakh per financial year Allows you to claim a deduction of up to Rs.2 lakh under Section
under Section 80C. 80CCD.

NPS allows you to withdraw funds up to 25% of the total PPF allows withdrawals after 15 years. Limited amount after 7th
contributions. year.

NPS lets you buy an annuity at the time of exit for a regular pension PPF does not provide an annuity option.
at 60
Example Scenario

Assume Rohit and Arun begin saving Rs 1.5 lakh for their retirement in 2020. They are
both 25 years old and hope to retire at 60. They also intend to keep this investment
going until 2055, when they retire. Rohit has invested in NPS, and Arun in PPF.
Rohit’s Investment (NPS)

● Average annual return: 10%

● Investment amount yearly: Rs. 1.5 lakh
● Investment time period: 35 years
● Total investment in 35 years: Rs. 52.5 lakh
● Retirement corpus: Rs. 4.78 crore
Arun’s Investment (PPF)

● Average annual return: 7.1%

● Investment amount yearly: Rs. 1.5 lakh
● Investment time period: 35 years
● Total investment in 35 years: Rs. 52.5 lakh
● Retirement corpus: Rs. 2.26 crore
 Power of Compounding

The power of compounding is the fundamental cause

behind the disparity in Rohit and Arun’s corpus. PPF
interest rates have been declining in recent years;
nonetheless, there is a chance that NPS will provide you
with more than 10% returns in the future.
What do you think?

Which Investment option according to you is the better one based on the facts
presented?
OR
Reference Videos - Self Learning

1. NPS vs PPF - https://youtu.be/HDYTywPW2yc?si=NvI-4XvnNpT4YZwy

2. Key differences of both - https://youtu.be/1geFWTrp1qE?si=aXUhu1TGKSFG3bDQ
3. Detailed explanation of NPS - https://youtu.be/2cKsynx3x0Q?si=9yZc7IPnTbmx05kR
4. Detailed explanation of PPF - https://youtu.be/WJkEB43QJNk?si=bSlNBpZF19UQSWvA