NPS - Is it a Good Thing or Not?

#1
I already invest 1.5 Lakhs in PPF. I was wondering if it makes sense to invest 50K more in NPS?

I know the 50K becomes tax free.

- However, is the earnings on NPS tax free?
- Is withdrawal tax free?
- Are there any guaranteed returns?
 

Atiker

Active member
#2
I already invest 1.5 Lakhs in PPF. I was wondering if it makes sense to invest 50K more in NPS?

I know the 50K becomes tax free.

- However, is the earnings on NPS tax free?
- Is withdrawal tax free?
- Are there any guaranteed returns?
I am no expert but here are my two cents.

1. NPS money is locked for a longer duration than PPF.

2. At withdrawal NPS forces to buy annuity, whose return currently are pathetic compared to simple govt bank Fixed Deposits

I for one believe that equity MF would be a better option if invested when the markets are not at their peak in terms of p/e.
 
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