Is NPS still a good option?

[Bhuvanchandra M]

Is NPS still a good option considering there are other options on planning a proper retirement?

 

[zacobite]

Is NPS still a good option considering there are other options on planning a proper retirement?

v v gd option.. misunderstood by many.. awareness is low.. better than mf also in tax advantage.. shd be taken by all... with other options also..

 

[flash007]

If you do MF and are good with your finances, then MF is better than NPS.

Some will say NPS is better, as it gives you 50k tax benefits, i.e. 15k per year free, which is 30% straight profit.
But this is not true for everyone, you can do the maths yourself:

• NPS return ~8% average on 50k annual investment
• MF return ~12% average on 35k annual investment (post tax of 50k for someone who falls in 30% tax bracket)

Run numbers for long term, you will find out MF beats NPS fair & square.

 

[zacobite]

If you do MF and are good with your finances, then MF is better than NPS.

Some will say NPS is better, as it gives you 50k tax benefits, i.e. 15k per year free, which is 30% straight profit.
But this is not true for everyone, you can do the maths yourself:

• NPS return ~8% average on 50k annual investment
• MF return ~12% average on 35k annual investment (post tax of 50k for someone who falls in 30% tax bracket)

Run numbers for long term, you will find out MF beats NPS fair & square.

Your math is not accurate.. NPS has multiple options to invest in the equity market +Its more like a multi cap MF + lowest charges + tax free at all stages.. pls chk NPS Fund returns over last 3 yrs and compare.. they will be at par / better than MF.. NPS should form part of your plans.. Its not either or.. its both.. This is exactly what i said that awareness is low.. Initial tax benefits are a bonus..( pls remember u will invest post tax income into MFs and non taxed into NPS).. eg. To put 10k into MF u need to make 13.5k income pre tax. To put 10k into Corporate NPS you can put 10k and will get 3.5 k tax benefits.. do the math.. if u are in 35% tax bracket and have corporate NPS then it is a MUST have.. too many pros to ignore.. If ppl can put in PPF then NPS is a sure winner


Dont miss the opportunity..

 

[flash007]

Your math is not accurate.. NPS has multiple options to invest in the equity market +Its more like a multi cap MF + lowest charges + tax free at all stages.. pls chk NPS Fund returns over last 3 yrs and compare.. they will be at par / better than MF.. NPS should form part of your plans.. Its not either or.. its both.. This is exactly what i said that awareness is low.. Initial tax benefits are a bonus..( pls remember u will invest post tax income into MFs and non taxed into NPS).. eg. To put 10k into MF u need to make 13.5k income pre tax. To put 10k into Corporate NPS you can put 10k and will get 3.5 k tax benefits.. do the math.. if u are in 35% tax bracket and have corporate NPS then it is a MUST have.. too many pros to ignore.. If ppl can put in PPF then NPS is a sure winner


Dont miss the opportunity..

1. I never said ppf is better than NPS
2. If you are checking NPS return from last 3 year then compare it as well with MF return. MF is sure shot better than NPS. If you can read/understand the above comment properly.
3. When I say read the above comment properly, I refer to this part of your comment "10k into MF, u need to make 13.5k income pre tax", this is already addressed in my comment.

• NPS return ~8% average on 50k annual investment
• MF return ~12% average on 35k annual investment (post tax of 50k for someone who falls in 30% tax bracket.

 

[zacobite]

1. I never said ppf is better than NPS
2. If you are checking NPS return from last 3 year then compare it as well with MF return. MF is sure shot better than NPS. If you can read/understand the above comment properly.
3. When I say read the above comment properly, I refer to this part of your comment "10k into MF, u need to make 13.5k income pre tax", this is already addressed in my comment.

Ok. Nothing more to say .. Have expressed my view already.. Good Luck

Watch the NPS episode on Paisa Waisa with Anupam Gupta or the one by Udayan Adhaye on YT

May help. clarify what I was saying.. Cheers