NPS can save you additional tax, and more

To NPS, or not to NPS, that is the burning question. On one hand, you have the National Pension Scheme (NPS) for those in the old tax regime. It can help you grow your money as well as save additional tax by investing Rs 50,000 in it. On the other hand is a school of thought that advocates equity mutual funds for the long term instead. They have a valid reason, too, especially if you are in your 20s to mid-30s and an aggressive investor: NPS doesn't allow you to invest more than 75 per cent of your money in equity. The rest is put in a rather conservative fixed-income option. Although a 75:25 split in equity and debt is a healthy asset allocati

This article was originally published on October 20, 2023.