NPS (New Pension scheme)

POSTED BY Karthik ON January 25, 2013 7:58 pm COMMENTS (6)

Guys, I am seeing NPS advertisements daily in local newspaper.

Just want to know how good is that?

Is it as good as PPF – since NPS is also from Govt?

I am anyhow going to dig about that. But want all your views as well.

6 replies on this article “NPS (New Pension scheme)”

  1. Dear Srinivas, what are you understanding from this lump sum withdraw thing? Please clarify.



  2. Srinivas T says:


    With recent changes in new NPS, i.e “Pension scheme now allows lump sum withdrawal on exit”!. Does this make good investment planning for retirement??

  3. Karthik says:

    Sorry. Autocorrect failure. I meant Mr.Pattu.

  4. Karthik says:

    Great. Thanks Mr.Ashal and Mr.Party. I will wait until it proves good.

  5. Dear Kathik, please read a past article by dear Manish in JI. In it’s current avatar, I’ll not recommend NPS to you or anybody. In fact I’m not investing even my own money. Why?

    The Eq. part is capped to 50% & that too in index fund only. After a poor start, the charges increased last year to compensate distributors. Please wait for DTC to make NPS attractive or only eligible tax saving option after PF & PPF within the 1L Rs. window.

    The most important point, no clarify on pension yet. From where we ‘ll get & how much.

    If your 1L Rs. limit is already exhausted no need to go for NPS.



  6. NPS has several drawbacks, the main of which is lack of clarity of annuity or pension.

    However if 80C is increased to 3 lacs and also if DTC kicks it will be good tax saving investment esp if PPF ceiling is maintained at 1 lac.

    PPF+ equity MFs is a pretty good combo and better then NPS.

    Best way would to wait a bit while investing in other avenues

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