Aren’t we all worried about our futures?
People may say that only love can cherish your old hood phase but is that true? Money may not bring joy but we shall all agree that it brings stability and assurance!
However we all know we are empowered by the government via the NPS( National Pension Scheme) which was launched around 2004 in February as a retirement saving scheme for the citizens of India.
Moreover, we can also empower ourselves for the future via the Mutual Funds, which covers diversified portfolios and increased rates of return.
Let us explore more:-
- NPS provides a government-regulated, structured pension plan. Under Section 80CCD(1B), it offers an extra advantage of Rs. 50,000 in addition to tax benefits under Section 80C. It offers two options for investments: debt (up to 75%) and equity. Moreover, NPS offers the choice to move between different funds in accordance with age and risk tolerance. Its strict withdrawal rules and restricted liquidity before retirement age are drawbacks.
- Inversely, mutual funds provide a wider range of investing options. Long-term returns from equity mutual funds could be higher, which makes them a good choice for retirement planning. Additionally, they provide a range of fund options to suit various risk tolerances and investing objectives. Furthermore, mutual funds provide greater liquidity, enabling investors to fully or partially redeem their investments as needed.
The best choice for retirement planning is going to differ depending on personal preferences, risk tolerance, and financial objectives. For individuals who want an organized pension with tax advantages, NPS may be their preferred option. Investors who are seeking flexibility, greater potential returns, and liquidity may prefer mutual funds.
