NPS or Mutual Fund: NPS or Mutual Fund, which is more profitable in retirement? – NPS or Mutual Fund where should we invest money

Where to invest?

At the end of the khattan day and night, keeping the future in mind, almost everyone wants to save something more for the protection of the family. When thinking about a secure retirement life, many people take the route of investing while working. But, where to invest can get a big profit? Good interest can mean big returns? Mutual Fund or NPS? Many people get lost in this investment conflict.

What is NPS?

The National Pension Scheme (NPS) is a government initiative. Generally, through this system, employees in any industry can open accounts and make recurring deposits up to a specified period. You can withdraw part of the money invested during your retirement. Note that since it is a government initiative, there is absolutely no risk in this diet. Thus, the money invested is safe year after year. According to experts, the NPS is an ideal medium for long-term investment.

What is a mutual?

Mutual funds can be of two types long term or short term. There are different types of mutual funds available in the market depending on how long the investor wants to invest their capital. Generally, mutual funds are managed by professional fund managers. However, although there is some risk in this investment, the amount of profit is also high. The money invested can be withdrawn by the investor at any time. There is no blackout period in any sector except ELSS.

So which one to choose?

But among these different advantages and disadvantages, the question is NPS or UCITS, which is better? Where can we invest? According to the experts in this context, if we look at it from the tax side, then we can see that tax benefits are available in both directions. However, equity mutual funds have less tax advantages than NPS. On the other hand, NPS account holders have several restrictions on withdrawals. Until the investment has completed 10 years or, until the investor reaches 60, there are various restrictions on how the investor can claim the money. Meanwhile, entering or exiting mutual funds is very flexible. The investor can deposit or withdraw money at any time.

In case of mutual funds, the minimum investment is only Rs 500. That is, a person can start investing in mutual funds with just Rs 500. Compared to this, the same person has to pay Rs. 1,000 as the minimum price to start investing in the National Pension Scheme.

Again, in terms of returns, annual returns from NPS can be around 9-12%. Meanwhile, the annual return in case of mutual funds is entirely conditional. The fund will depend on the annual return you can get. According to stock market experts, if a person invests Rs 15,000 in mutual funds every month for 15 years, his annual return can reach 15%.

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Note – This is an educational report on investing in the stock market and mutual funds. This report is never intended to encourage investment or find easy ways to make a profit. One of the objectives of this report is to provide information on the various issues of the stock market. Note that investing in the stock market is always risky.