September 25, 2010 2:58 pm
I have PPF , SIP , Term plan running .For long term ,do i still go for NPS ?
Let’s make things simple.
PPF – 100% debt – tax emeption under sec80c – No risk. – fixed return – maturity amt. tax-free
SIP in equity mutual funds – 40% – 100% equity – No tax exemption under sec80c after DTC – Risky – maturity amt. tax-free
In NPS, there are 2 options. 100% debt & 50-50 in equity & debt.
Sect80C – maturity amt. will be tax-free after DTC.
You may want to go for NPS for Sec80C benefit (apart from PPF) as there will be very options after DTC.
Hope it will help you.
For now NPS is not very transperant so we can avoid it. Continue with your existing investments. When DTC comes in 2012 we will have a clear picture and we can take a decision then. I too am waiting for more clarification on NPS.
More details about NPS
For long term , one has to invest in Equity , it can be through SIP in equity mutual funds or soem other route , even NPS is fine , but a better choice would be pure equity funds , keeo it simple
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