Introduction Planning for retirement is a crucial financial decision, and choosing the right investment vehicle can significantly impact your financial security. Among the many options available, the National Pension System (NPS) and Retirement Mutual Funds are two popular choices. But which one is better? In this article, we will explore NPS vs retirement mutual funds to help you make an informed decision. What is NPS? The National Pension System (NPS) is a government-backed retirement savings scheme that provides a mix of equity, corporate bonds, and government securities. It is designed to provide a stable income post-retirement and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Pros of NPS: Tax Benefits: Contributions up to Rs. 1.5 lakh per year are eligible for tax deduction under Section 80C, with an additional Rs. 50,000 under Section 80CCD(1B). Low Expense Ratio: The expense ratio of NPS Tier 1 is significantly lower than most mutual...
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