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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Comparison of Products Across Categories

Which comparison of the National Pension System (NPS) and the Public Provident Fund (PPF) is correct?

PPF runs for 15 years and earns an interest rate the government notifies periodically, while NPS returns depend on market performance of its asset classes. Neither is freely liquid, but only PPF has a government-set rate.

  1. APPF has a 15-year tenure and its interest rate is notified by the government periodically, while NPS returns are market-linkedCorrect
  2. BBoth PPF and NPS give a fixed return notified by the government
  3. CNPS has a 15-year tenure while PPF returns are market-linked
  4. DBoth are fully liquid at any time without conditions

Explanation

PPF is a government-backed small savings scheme with a 15-year maturity and a periodically notified rate. NPS invests in equity, corporate debt and government securities, so returns are market-linked, with withdrawal restrictions. The other options reverse or misstate these features.

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