Myth busted: You do not get 30% returns by investing 50,000 in NPS!

You would be surprised as to how many people believe that by investing an additional 50,000 in NPS, they “instantly” get a return equal to their tax slab! This is a case of mis-accounting or innumeracy. In this post, I discuss what exactly is the implication of “saving tax” via investing in 80C and with the National Pension Scheme (NPS).

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Announcement 1 : Gamechanger paperback is still available at a 25% discount for Rs. 149 only! Grab it or gift it to a young earner read more

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Do Not Shift Your EPF Corpus to NPS: It is a Trap!

In this post, I discuss why it is a terrible idea to shift your EPF corpus to the NPS (National Pension Scheme). In a circular dated 6th March 2017, the Pension Fund Regulatory and Development Authority (PDRDA) announced a road map for provident fund and superannuation plan subscribers to shift to the NPS.

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The shift will be one-time, tax-free and will not be counted as income. Hence this cannot be used for tax deduction. Here is why I think you should stay away from this opportunity. read more

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National Pension System (NPS): Exit and Withdrawal Rules

There has been a lot of confusion regarding the exit and withdrawals rules of the National Pension System (NPS). I apologise if I have contributed to it. In this post, I shall attempt to get rid of my own confusion and clarify my understanding.

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Until today I have incorrectly believed that 40% of the NPS corpus can be withdrawn tax-free, either upon retirement or before and thought that the NPS regulator PFRDA would announce a revision to its  PFRDA (Exits and Withdrawals under NPS) Regulations. read more

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NPS Tier 1 Corporate Scheme (C) Performance – Oct 2016

NPS Tier 1 and Tier 2 plans have a corporate scheme (C) which has a mandate to invest in bonds issued by public sector undertakings (PSUs), public financial institutions (PFIs), infrastructure bonds, private corporate bonds and bank deposits.

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This is like a short-term diversified debt fund with about 50% of a banking and PSU fund and 50% of a corporate bond fund. However, the credit quality is typically much higher. read more

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NPS Tier 1 Equity Scheme (E) Performance – Oct 2016

A look at how NPS Tier 1 Equity schemes (E) have performed. With the increase in popularity of NPS because of the clever introduction of additional tax saving benefits – which one should avoid, more and more people are searching for “best NPS pension fund manager”.

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The reality is that there is nothing much to choose between the seven pension fund managers – ICICI, UTI, HDFC, Kotak, Reliance, SBI, LIC. Value Research has started maintaining returns of NPS Schemes and quick will validate the above comment. read more

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