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Ch.1 · Savings vs Investment Avenues · medium

Which of the following investment alternatives has the LONGEST mandatory lock-in period?

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EXPLANATION

PPF has the longest mandatory lock-in of 15 years among common tax-saving instruments. ELSS is 3 years, NSC and SCSS are 5 years. Sovereign Gold Bonds have an 8-year tenure with exit option from year 5.

A.ELSS — 3 years

B.National Savings Certificate (NSC) — 5 years

C.PPF — 15 years [✓ Correct]

D.Senior Citizen Savings Scheme (SCSS) — 5 years

EXPLANATION

PPF has the longest mandatory lock-in of 15 years among common tax-saving instruments. ELSS is 3 years, NSC and SCSS are 5 years. Sovereign Gold Bonds have an 8-year tenure with exit option from year 5.

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