NPS vs MF vs PPF vs EPF | Which is Better? | CA Rachana Ranade

"from there we have almost double in the last 10 years now the overall subscriber base for NPS is 2 crore"

"and AUM has gone almost eight times"

"NPS Vatsalya is for minors. And this was introduced I think in September 2024"

"aggressive investor 75% equity allocation will be done and balance in debt as I told you corporate bonds government bonds whatever and the allocation this 75% allocation can be allowed till you attain the age of 35 but after 35 till the age of 55 this equity allocation will go on reducing by 4% every year at the age of 55 it will be only 15% in equity balance in debt simple till here if I am talking about a moderate category of investor. It will be 50% in equity, 50% in debt. And 50% maximum allocation will be allowed till the age of 35, then it will keep on reducing by 2% every year, and ultimately, it will be reduced to 10% equity exposure by the age of 55. And if I am talking about a conservative restaker, a maximum of 25% equity allocation will be allowed till the age of 35, then it will go on reducing by 1% every year. And at the end of 55th year only 5% equity exposure will be remaining balance will be very simple"

"Maximum equity How much you can have as a part of your NPS portfolio maximum 75%"

"Here there is no cap on investment. You can do either 100% equity or 100% corporate bonds or even 100% government securities."

"equity has given somewhere between 12 % to 13 1/2 %"

"here it is somewhere around 8 to 9% for 3 years. Let Us Say It Was Again Roughly 9%."

"here you can see a lot of them going into that 10% category too."

"For new tax regime. None of these neither ATCCD one nar ATCCD one be none of them is applicable. So this contribution of the employee is not tax beneficial. And of you ask me, this is going to again give you, oh my God, feeling, why in financial year 23, 24, around 74% of the taxpayers head opted for the new regime. And it is expected that nearly 90% of the taxpayers may opt out for the new regime in the next year. So, none of them is going to get the employee contribution benefit."

"And in fact, if you are under a new tax regime, you will get a deduction up to 14% of salary, salary includes basic plus DA. Here I Am Talking About What? Employer's contribution to NPS. And for a change, the new tax regime has higher deduction possibilities, right?"

"all contributions by both employee and employer under all the sections listed for tax benefits have a maximum limit of 7.5 lakhs that includes contributions to PF Superannuation Fund and NPS under the old tax regime."

"this deduction is not available for people who are under the new tax regime."

"60% is the maximum amount you can withdraw even when you retire at the age of 60. So, as a simple example, assume that you have ₹100. Just for simplicity, man. ₹100 at the time of retirement. Out of that 60 you can withdraw and this entire money will be tax free. So, 60% of whatever is your entire corpus at your retirement age, that you can withdraw at one shot and the entire amount will be tax free. What about the Balance 40? Balance 40 basically gets converted into annuity. ... this annuity amount will be taxable. As per your tax slabs"

"up to 20% of accumulated corpus Now here it is not about your contribution it is about up to 20% of accumulated corpus you can withdraw as a premature exit and this amount will also be tax free."

"whatever amount the nominee is going to get, that will be tax free."

"for NPS it is 0.03% to 0.09% per annum. So I hope here clearly NPS is a winner as compared to mutual funds because here the expense ratio is extremely low."

"For EPF, I am giving you the latest rates it is 8.25% and for PPF it is 7.1%"

"if you are looking more for returns perspective mutual funds could be a choice but again very less tax benefit which is available here plus expense ratio is also shade on a higher side"

"from there we have almost double in the last 10 years now the overall subscriber base for NPS is 2 crore ₹136236 but two the number of investors in NPS has doubled in the last 10 years from 1 crore to 2 crore"

"and from here sir it has gone to 1474298 again rupees in crore i think this is almost at times roughly. So the number of subscribers has doubled and AUM has gone almost eight times"

"And NPS Vatsalya which I did not talk about. NPS Vatsalya is for minors. And this was introduced I think in September 2024"

"After 35 till the age of 55 this equity allocation will go on reducing by 4% every year at the age of 55 it will be only 15% in equity balance in debt simple till here"

"then it will keep on reducing by 2% every year, and ultimately, it will be reduced to 10% equity exposure by the age of 55."

"then it will go on reducing by 1% every year. And at the end of 55th year only 5% equity exposure will be remaining"

"here you will see that equity has given somewhere between 12 % to 13 1/2 %"

"So here it is somewhere around 8 to 9% for 3 years. Let Us Say It Was Again Roughly 9%."

"here you can see a lot of them going into that 10% category too."

"For new tax regime. None of these neither ATCCD one nar ATCCD one be none of them is applicable. So this contribution of the employee is not tax beneficial. And of you ask me, this is going to again give you, oh my God, feeling, why in financial year 23, 24, around 74% of the taxpayers head opted for the new regime. And it is expected that nearly 90% of the taxpayers may opt out for the new regime in the next year. So, none of them is going to get the employee contribution benefit."

"And in fact, if you are under a new tax regime, you will get a deduction up to 14% of salary, salary includes basic plus DA. Here I Am Talking About What? Employer's contribution to NPS. And for a change, the new tax regime has higher deduction possibilities, right?"

"if you are a government sector ah employee then be it old regime and new regime you the government contribution employer contribution here will be government contribution up to 14% of salary again salary is basic plus DA that will be eligible for deduction under section under 80 CCD to"

"Kindly note that all contributions by both employee and employer under all the sections listed for tax benefits have a maximum limit of 7.5 lakhs that includes contributions to PF Superannuation Fund and NPS under the old tax regime."

"under the new tax regime entire limit of 750 will be available under section 80CCD so maximum contribution here employee years contribution I am talking about if it is up to even 7.5 lakhs that can be eligible for deduction."

"But here you have a minimum lock in period for three years. So, if you want this 8C deduction of ₹1,50,000, your investment gets locked in for a minimum period of three years."

"Whenever you are withdrawing money from a tier to NPS account, whatever withdrawal you are doing that is taxable as per your tax slabs."

"60% is the maximum amount you can withdraw even when you retire at the age of 60. So, as a simple example, assume that you have ₹100. Just for simplicity, man. ₹100 at the time of retirement. Out of that 60 you can withdraw and this entire money will be tax free."

"Balance 40 basically gets converted into annuity. ... this annuity amount will be taxable. As per your tax slabs what weight entire 40% is not tax at one shot. It's annuity, right? So that 40% remaining sum amount will be paid every single year and that is the reason why it is called as annuity. Correct? Every year some amount you will receive out of that balance 40% and this amount that you receive every year that will be taxed as per your tax slab simple."

"If you want, you can withdraw up to how much? Almost up to 25% of the self contributed amount that will be the amount that you can withdraw"

"up to 20% of accumulated corpus Now here it is not about your contribution it is about up to 20% of accumulated corpus you can withdraw as a premature exit and this amount will also be tax free."

"in case of unfortunate death, if it happens, of course whatever amount the nominee is going to get, that will be tax free."

"NPS is a winner as compared to mutual funds because here the expense ratio is extremely low."

"If you have as good as near zero risk taking appetite. Even EPF PPF can be good options, but you can also go at with 100% debt exposure in NPS."