NPS vs Mutual funds: Which one should you choose for retirement planning?

The available options

There are many investment options available to help you plan your retirement. Among these, NPS and mutual funds are considered ideal for meeting your post-retirement needs.

What is NPS?

NPS (National Pension Scheme) is a defined contribution scheme that aims to provide pension benefits to all Indian citizens.

What are mutual funds?

Mutual funds pool money from investors, which is then invested across various asset classes such as equity, debt, commodities, etc.

Which is better?

Let’s look at the key differences between NPS and mutual funds to find out.

Our view

While NPS is more cost-effective and tax-efficient, mutual funds are a better option, as they invest across various securities, increasing the likelihood of earning higher returns.

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