NPS – your perfect choice to save extra up to ₹15,480!
True freedom is when we have financial independence and security, isn’t it? We invest with the hope to achieve this goal. How about you invest in a government-backed scheme that not only secures your retirement but also gives you the right exposure to equity and helps you to save tax?
Yes, MyWay Wealth smartly puts all your investment needs in one box and presents to you…
National Pension Scheme
NPS is a government introduced retirement plan, regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS has a perfect definition of diversification as it includes equity, bonds, and government securities in its scheme. This composition of NPS yields returns ~9% to 12% which is way higher than other pension options such as PPF (7.9%), APY (8%), SCSS (8.6%) and FDs (8.25%).
Not just that! Under section 80 CCD, NPS lets you save upto ₹15,480 in taxes (over and above savings under section 80C) if you invest ₹50000 in any financial year.
Let’s see a sample NPS portfolio for a 35-year-old who makes a monthly contribution of just ₹5000 in NPS until the age of 60 years. Assuming an interest rate of 10%, he would earn a total pension wealth of ₹65,96,366 with just a principal amount of ₹15 lakh. Thanks to the power of monthly compounding!!