Is investment in NPS worth it ?

Pain point 1: NPS corpus is not tax free on maturity
NPS corpus is not tax free on maturity.
Why should the NPS corpus be taxed when other instruments like PPF, ELSS and life insurance are tax free, asks Manoj Nagpal.

Pain point 2: Compulsory annuity takes away flexibility
Investor is forced to put 40% of the corpus a low-yield and tax inefficient option.

Pain point 3: No withdrawals till retirement at 60
Investors may want to use the money to meet other financial goals as well.

Pain point 4: 50% cap on equity restricts potential
Younger and aggressive investors may want to invest more in equities.

Pain point 5: No assurance on returns
Some investors seek certainty and are wary of market-linked returns.

Author: suratmsf

Chartered Accountant in Practice since 1995. Vice-chairman of The Financial Co-operative Bank Ltd, Surat. FINCO Bank. Promoter and Ex-independent director of Gallantt Metal Ltd. Ex-Chairman of Surat branch of ICAI. UPSC dropped by 40 marks. Avid investor in equities and businesses.

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