Invader

Is investing in NPS worth it?

Should we invest in NPS if you are falling under higher tax bracket of ~30%? I am having income of 20+ LPA. I did some calculations investing same amount of money in mutual fund sip the return is much higher than NPS. What confuses me is it actually worth just for saving tax on 50k? As I only intend to invest 50k for tax purposes only.

Please kindly suggest some for your thoughts and insight.

11mo ago

ElonMast

Amazon11mo

What’s the underlying asset for NPS & MF?

Invader

Stealth11mo

Both are equity. But in NPS around 75% equity and other are debt. With time equity percentages get decreased. NPS is a govt scheme. We can only withdraw NPS fund after age of 60.

ElonMast

Amazon11mo

So aren’t you comparing Apples to Oranges?

salt

Gojek11mo

Yeah you should be because it saves you tax in the long run

WololoBluru

Nokia11mo

I didn't find it attractive for many yrs , until recently when I ran the math and checked the retirement prospects.

As commented by others here, immediate tax benefits in old regime is a good benefit. But in long term, tax savings on withdrawal at a lower cost than other MFs, especially with an additional mandatory lock-in, is all pros in my view.

Glubglub

Google11mo

The employer contribution of 10% is completely tax free.

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Curated from across

MonkWhoBoughtFerrariMorgan Stanley8mo

Any opinions about if one should invest in NPS or not.

Consider investing in NPS and taking the tax benefit (however locking money until 60 atleast) vs investing in mutual funds.

Please share your thoughts if its worth the tax benefit.

MatrixGAccenture9mo

Investing in NPS

I am planning to invest in National Pension Scheme. Is it a wise decision or any better options for retirement planning? And if you have already invested pls suggest which one to invest in.

Please let me know your views if you have inv...