Some points were missed in this video: 1) NPS gives an additional tax benefit of 50000 under section 80CCD. 2) At retirement, you can only withdraw 60% of the corpus and the remaining is used like monthly pension
I think PPF is better option because it is safe option and for adventure I will go for Equity Mutual fund as it will rebalance our portfolio between Equity and Debt .
One point not covered here is NPS at the time of maturity mandates you to invest in annuity plans while in ppf u get full amount. So if you continue the example till age 75-80 you will see PPF is way better than NPS as annuity returns are way below standards
NPS is good only for the extra 50k tax (80CCD I think) benefit if your 80c is already covered. Rest u can directly choose your Mutual funds and shares for investment rather than investing in NPS and waiting till 60 post which anyway u can’t do a 100% withdrawal, only upto 60% allowed
Thank you very much Arjun Goud. Nothing gives us more joy than to see the channel viewers and ETMONEY users taking the fullest advantage of our investing platform to improve their risk-adjusted return. Pls do spread the good word with your friends and family members.
Major bottlenecks are 1. NSP lock-in period which is 60yrs. There is no guarantee that after 50yrs one can still be working in private sectors. 2. Though PPF has only 15yrs lock-in period the tax benefits fall under 80C. Most of the 80C sections are covered by PF, home loan & insurance so again no major reason for investment whether its NPS or PPF. 3. Average life of a person has fallen down so returns after 60 yrs does not make much sense. Unless government consider the Tax benefits other then 80C its not worth.
Hi Anil, 1. For NPS, there are tax benefits over and above Section 80C. Do check out our video on NPS tax benefits. 2. Your NPS account is not linked or dependent on where you work or if you work.
You said NPS tax free in return. It is wrong, Since NPS is also gets invested in equity, 60% is tax free, 40% is taxable. Did not expect this wrong info from ETMONEY.
Hi, NPS returns are tax-free. At the time of maturity, 60% of the amount is transferred to your bank account and the remaining 40% to the annuity plan you chose through which you get a pension. Now no tax is deducted before this money is transferred.
@@sudheer960-z2k The 40% has to be used to buy an annuity product from an insurance company. This annuity product then gives you a monthly pension. The mix will depend on what kind of annuity payout you choose.
1-tiar 1 account me paise har mahine jma karne padege ya apne aap account se kat jayege ? 2-Aur jo 1500rs cut hoga opening par wo refund hoga ya nahi ? 3-aur 1500rs one time charge hai ya har sal aur amc change bhi padega kya? 4- aur bank se open karna jyada safe hai ya khud se open kare? 5-aur agar sbi bank se ya online open karwate hai to kya bank kuch extra charge legi? 6-aur tier 2 account ko hum fd ki tarh use kar sakte hai jaise 1 lac 1 sal ke liye deposit karke fir widral kar le aur interest kitna milega ? 7-Retirement ke kitne sal tak paise milege (agar age 100+ ho gai to bhi milta rahega kya ) 8- government change ho gai aur is nps ko change kar diya ya band kar diya to kya hoga ? 9- agar kuch year bad government nps par tax lene lagi to ? Kyuki time -time par nps me badlav ho rhe hai . 10- agar nps lene ke kuch year ya kuh mahino bad death ho jati hai to kya ho ga? (Sir please reply bahut confusion hai )
I like both as i have 35 years till retirement and i will invest in both . I just want a monthly pension of 40000 at time of retirement and for 20 years the amount needed will be like 2 crores and this amount will be sufficuent . Also a gov employee gets pension
Hi Ashish, Yes. There is no guarantee of returns. But if you looking to invest for say 20-25 year, wouldn't you want to give your money the best possible avenue to grow?
The main points are missing, 1. Withdrawal (NPS only gives 60% remaining 40% u need to reinvest in the annuity) 2. Premature Withdrawal (NPS only gives 20%(taxable) remaining 80% u need to reinvest in the annuity)
I am a new subscriber. Your explanation is too good and brilliant ❤👌 with beautiful animations , feels very clear to understand . Short and simple ❤👌 Please do share the software you use for animations, as I am learning video editing 😊
NPS me only 50000/- ki deduction milti y 80C me or PPF me 150000/- . NPS me after 60 yrs we can withdrew with ratio 60% and 40% will remain as pension. but PPF me sara amount withdrew kr skte h...in my opinion PPF is best instead of NPS.....i have also NPS account as per govt policy for govt servant...thts y i knw about NPS
You can not invest in ppf through ETMoney app whereas you can invest in NPS through ETMoney that's why it is better than PPF. Misguide karna kabhi band nahi karenge ye
suppose person A opts for NPS. But in an accident or somehow person A dies before 60 so what will happen to the amount? will the spouse or parents get it ?
Biased video as ET MONEY only offers NPS and not PPF. Pease don't play with people's future. PPF is one of the best retirement option. If PPF rates will fall,then so will NPS.
Lock in period is one key feature makes NPS a better option over PPF as a retirement investment scheme. With just 15 years of Lock in psychologically we tend to put the money in use post the lock in period, which is restricted in NPS.
Hi Rohit, There is no link between PPF rates and returns of NPS. NPS is a market-linked product where you invest in a mix of equity and debt. PPF on the other hand is a pure debt product whose rates are decided by the government. To your point on PPF is better, let's agree to disagree :) We believe equities over the long-term have historically and will beat debt products.
@@ETMONEY This is the best time to show that there is a link between fixed income returns and market linked products. Now when the whole economy has crashed,can fixed income options give 8% returns that they used to give? Fixed income options automatically give lower returns when equity give lower returns.
@@ETMONEY I am a public sector employee and NPS is getting deducted every month so Will my employer also contribute the same amount in my NPS account as in the case of EPF ?
In nps as we see investments done in govt bonds, corporate bonds and equity. Request to kindly let know whether there's any capital gain tax levied on equity in nps scheme?
You should have also conveyed facts about 60% withdrawal which people have also commented. So in my opinion that does not make it a better retirement option. You do not want to leave your 40% of your NPS fund to come in instalments which is a staggering amount once you have retired.
If you have EPF(8.5percent) account, then don't even think of these PPF or NPS(7to 7.5percent) schemes. EPF can be withdrawn any time but these two you can't
Beyond 50 years, the portfolio will start gravitating to more debt than equity per the PFRDA rules. Watch this video for more details: th-cam.com/video/B2Im6jO8tGk/w-d-xo.html or visit PFRDA website
In case of non-government (private) investor, at the time of withdrawal from tier 2 account, is whole amount withdrawn (principal + ROI) taxable or only ROI? Is taxability based on individual's applicable tax slab?
Hi, Is there any cap on NPS investment per year?, incase of PPF it is capped at 1.5 lakhs per year. Because I am planning to start NPS with 2 lac per year.
Wanted to check something, say for example I am 40 , I start with a SIP of 10,000 initially , and for some reason I want to change the SIP amount to 2000 after 6 years , whats the possibility ...can this be altered / modified
Hi. There are some conditions around this. www.businesstoday.in/latest/economy/story/ppf-withdrawal-rules-5-account-rules-you-need-to-know-330665-2022-04-21
Hi, I'm definitely convinced with the idea of NPS over PPF. I've gone through NPS in ET money App. There is only a lumpsum option, however the monthly option is "coming soon". When can we expect the monthly option to be available in the App? Thanks Anurag.
Your contribution is voluntary, you need to invest the amount you are comfortable with. if you are asking your employer to contribute to NPS then they will invest 10% of your Fixed salary+ DA. Eg - if your salary is 30K it will have a basic salary and DA component with somewhere let's say 10K then the employer will add 1K to your tier 1 NPS account.
PPF and NPS can't beat inflation rate. Invest in ELSS if one invests for the same 15.years, ELSS profits beat all the inflation and also tax braket. Even if you pay the tax o profits, you would get hefty amount more than PPF and NPS.
Please watch our ETMONEY Answers session we conducted on 16th Jan 2021 on why that is the case. The session has answers to most common questions that have been asked on NPS.
BRING THIS GUY BACK.
Such an engaging way of explanation
Some points were missed in this video:
1) NPS gives an additional tax benefit of 50000 under section 80CCD.
2) At retirement, you can only withdraw 60% of the corpus and the remaining is used like monthly pension
These two points are for NPS.
My plan is to invest in both equally.
I think PPF is better option because it is safe option and for adventure I will go for Equity Mutual fund as it will rebalance our portfolio between Equity and Debt .
Only purpose I'm investing in nps is extra 50k tax deduction.
hi, if one's 80 c limit of 1.5 is already covered in other instruments, and then one takes NPS..can he claim in the 50 k extra section?
@@namamipande1436 yes
Sir, I have GPF deduction from salary , total savings comes to 1.5k. Is it possible to get extra 50000 tax exemption by investing in NPS?
Which are better? Tax savings mutual funds or NPS?
@@gajavelliprincesses yes
You can't withdraw the whole corpus from NPS on retirement. Only 60% of the total corpus can be withdrawn.
Why did he not mention this option? This can easily mislead potential investors.
Thats true. The maturity benefits are lot different between PPF n NPS. This is a major decision point and should have been mentioned with an example.
True. however in some case that 60% is still higher than the PPF returns and you get to invest remaining 40% as pension.
Bro...if you withdraw the whole corpus then it defeats the purpose of nps.
Atleast 40% annuity is required.
Rest 40% will come you as a monthly pension
You have disclose it in very good manner. I want aaj you anybody can use both NPS and PPF if he want
Yes. One can have NPS and PPF if the person desires.
@@ETMONEY what about tax...if we have both?
One point not covered here is NPS at the time of maturity mandates you to invest in annuity plans while in ppf u get full amount. So if you continue the example till age 75-80 you will see PPF is way better than NPS as annuity returns are way below standards
NPS is good only for the extra 50k tax (80CCD I think) benefit if your 80c is already covered.
Rest u can directly choose your Mutual funds and shares for investment rather than investing in NPS and waiting till 60 post which anyway u can’t do a 100% withdrawal, only upto 60% allowed
Sir thanks a lot. I changed my investment plans after watching your few videos. God bless u.
Thank you very much Arjun Goud. Nothing gives us more joy than to see the channel viewers and ETMONEY users taking the fullest advantage of our investing platform to improve their risk-adjusted return. Pls do spread the good word with your friends and family members.
@@ETMONEY carry your good work team etmoney
Great Video and Speaker has calm and soothing voice
Glad you enjoyed it
How can you miss on withdrawal plans of NPS which makes it unattractive plans of them all ?
Can any one.can open NPS a/c after 61 yrs.of age? whose retirement age is 65yrs. If yes, when it will matured and can redemption.
Major bottlenecks are
1. NSP lock-in period which is 60yrs. There is no guarantee that after 50yrs one can still be working in private sectors.
2. Though PPF has only 15yrs lock-in period the tax benefits fall under 80C. Most of the 80C sections are covered by PF, home loan & insurance so again no major reason for investment whether its NPS or PPF.
3. Average life of a person has fallen down so returns after 60 yrs does not make much sense.
Unless government consider the Tax benefits other then 80C its not worth.
Hi Anil,
1. For NPS, there are tax benefits over and above Section 80C. Do check out our video on NPS tax benefits.
2. Your NPS account is not linked or dependent on where you work or if you work.
hi, if one's 80 c limit of 1.5 is already covered in other instruments, and then one takes NPS..can he claim in the 50 k extra section?
@@namamipande1436 Extra 50k can be claimed under NPS
You said NPS tax free in return. It is wrong, Since NPS is also gets invested in equity, 60% is tax free, 40% is taxable. Did not expect this wrong info from ETMONEY.
this is exactly what I was wondering about.
Hi,
NPS returns are tax-free. At the time of maturity, 60% of the amount is transferred to your bank account and the remaining 40% to the annuity plan you chose through which you get a pension. Now no tax is deducted before this money is transferred.
@@ETMONEY
How that 40% is given as pension
Will the principal amount + interest or only interest
@@sudheer960-z2k The 40% has to be used to buy an annuity product from an insurance company. This annuity product then gives you a monthly pension. The mix will depend on what kind of annuity payout you choose.
Nothing is misleading..its just a comparison video..one cannot cover all points.. they have seperate videos for both PPF and NPS
1-tiar 1 account me paise har mahine jma karne padege ya apne aap account se kat jayege ?
2-Aur jo 1500rs cut hoga opening par wo refund hoga ya nahi ?
3-aur 1500rs one time charge hai ya har sal aur amc change bhi padega kya?
4- aur bank se open karna jyada safe hai ya khud se open kare?
5-aur agar sbi bank se ya online open karwate hai to kya bank kuch extra charge legi?
6-aur tier 2 account ko hum fd ki tarh use kar sakte hai jaise 1 lac 1 sal ke liye deposit karke fir widral kar le aur interest kitna milega ?
7-Retirement ke kitne sal tak paise milege (agar age 100+ ho gai to bhi milta rahega kya )
8- government change ho gai aur is nps ko change kar diya ya band kar diya to kya hoga ?
9- agar kuch year bad government nps par tax lene lagi to ? Kyuki time -time par nps me badlav ho rhe hai .
10- agar nps lene ke kuch year ya kuh mahino bad death ho jati hai to kya ho ga?
(Sir please reply bahut confusion hai )
Amazing sir.. Your way of explanation will be simple.. Anyone can understand what you say..👍🏻🙏🏻
Thank you
Still I feel NPS is risk since subject market price and I prefer PPF
Quality and explanations amazing 👏. Bro please doing the same. Don't stop
Thank you so much 👍
Can a person take both schemes
Kaunsa pension fund house accha hai. Ye kaise chune. Kya iska bhi koi parameters hai?
Sir.. U r an excellent speaker.. Just love to listen to u
Thanks a ton
you are best best best best ho sirrr👌👌👌all vedios are tooo goood
Thank you
I like both as i have 35 years till retirement and i will invest in both . I just want a monthly pension of 40000 at time of retirement and for 20 years the amount needed will be like 2 crores and this amount will be sufficuent
. Also a gov employee gets pension
10% interest is not guaranteed in nps so it could be lower than ppf return,
So how can you be sure about it ?
Hi Ashish,
Yes. There is no guarantee of returns. But if you looking to invest for say 20-25 year, wouldn't you want to give your money the best possible avenue to grow?
@@ETMONEY during this 25 years if there are 2 recessions (one in each decade is possib) then I don't think NPS can give 10%.
What about compounding interest we get in ppf
I like your presentation style really good!!!
Thanks
Simply described...very nice
Glad you liked it
Very well explained! PPF int has now decreased to 7.1%.
Soothing voice brilliant explanation
Kya nps me compounding ka fayda milta hai,ya fir life insurance jaisa bhi suvidha hai
The main points are missing,
1. Withdrawal (NPS only gives 60% remaining 40% u need to reinvest in the annuity)
2. Premature Withdrawal (NPS only gives 20%(taxable) remaining 80% u need to reinvest in the annuity)
Sir, please mujhe bataye mera ppf account me name aadhar se match nahi karta kya karu please
I am a new subscriber. Your explanation is too good and brilliant ❤👌 with beautiful animations , feels very clear to understand . Short and simple ❤👌
Please do share the software you use for animations, as I am learning video editing 😊
Such an amazing video presentation.
Wish it was in English so that people like me could understand more.
Thank you!
hindi seekh, tu india me rehta hai america me nahi! bina hindi aaye kar kya raha hai india me?
EPF account holder NPS & PPF account open kar saktehe
NPS me only 50000/- ki deduction milti y 80C me or PPF me 150000/- . NPS me after 60 yrs we can withdrew with ratio 60% and 40% will remain as pension. but PPF me sara amount withdrew kr skte h...in my opinion PPF is best instead of NPS.....i have also NPS account as per govt policy for govt servant...thts y i knw about NPS
your voice, it's impactful.
Agr hm NPS mein 1st month mein 5000 jama kiya to kiya 2nd month mein 10000 jama kr skte hai yeh phir mujhe har month 5000 hi jama krna hoga
simple and yet to the points told.......
Main Odisha ka hun main chhenai main NPS account open kar kai Transfer kar sekte hai ki nanhi
Sir Ji aapne ye to nehi bataya ke
Nps me sirf 60 % hi nikal sekenge
Hello, When you say about NPS returns, is it the amount in Tier 1 account? Or, the sum of amounts in both Tier 1 and Tier 2 accounts?
The returns are same in both Tier I and II
सर मार्केट बेस्ड स्कीम कैसे सेफ और अच्छी हो सकती है. जबकी पीपीएफ सेफ है ओर assured scheme है
You can not invest in ppf through ETMoney app whereas you can invest in NPS through ETMoney that's why it is better than PPF.
Misguide karna kabhi band nahi karenge ye
Bohut khub...
NPS HAVE NO GUARANTEE OF RETURNS. ALSO YOU CANT CHOOSE TEAR 1 FUNDS IF YOU ARE A GOVERNMENT EMPLOYEE
Incomplete description of nps. You should have elaborated on the corpus money.
I watch your videos about investment plans .
I have a question that one individual person can open PPF/NPS Both or not.
Yes, you can
Brilliant explanation 👨🎓 awesome presentation 👍🏻
Thank you
If We open both the a/c s,..
Can we deposit, 2 l in NPS &
1.5 L in ppf?
Haa, you can, but under 80C the maximum savings you can show will be 1.5 lakh
suppose person A opts for NPS. But in an accident or somehow person A dies before 60 so what will happen to the amount? will the spouse or parents get it ?
U r too good in explaining....
Thanks a lot 😊
Sir kya hum nps aur ppf dono account open kar sakte hai .
Yes, Vishnu Kumar. Aap NPS and PPF dono open kar saktein hain. Dono voluntary contribution option hain.
But in nps , it's not sure. What if market crash at the age of 60.
Biased video as ET MONEY only offers NPS and not PPF.
Pease don't play with people's future.
PPF is one of the best retirement option.
If PPF rates will fall,then so will NPS.
Lock in period is one key feature makes NPS a better option over PPF as a retirement investment scheme. With just 15 years of Lock in psychologically we tend to put the money in use post the lock in period, which is restricted in NPS.
Hi Rohit,
There is no link between PPF rates and returns of NPS. NPS is a market-linked product where you invest in a mix of equity and debt. PPF on the other hand is a pure debt product whose rates are decided by the government.
To your point on PPF is better, let's agree to disagree :) We believe equities over the long-term have historically and will beat debt products.
@@ETMONEY This is the best time to show that there is a link between fixed income returns and market linked products.
Now when the whole economy has crashed,can fixed income options give 8% returns that they used to give?
Fixed income options automatically give lower returns when equity give lower returns.
@@ETMONEY I am a public sector employee and NPS is getting deducted every month so Will my employer also contribute the same amount in my NPS account as in the case of EPF ?
@@rahulpaul0991 hello Rahul, do you ask to switch to NPS from EPS or you do it from start.
I am currently under EPS and want to switch to NPS!
Nps 60 yrs locking period ke baad paisa kaisa milegaa.... Monthly....
Onetime
Too good explanation 👍
Thanks a lot 😊
In nps as we see investments done in govt bonds, corporate bonds and equity.
Request to kindly let know whether there's any capital gain tax levied on equity in nps scheme?
A person 57 years in 30 pc tax bracket..can he invest more than 2 lakhs (1.5 +0.5) since only 3 years lock in.
Sir, agar NPS tier 1 account holder ki death ho jaye to nominee ko paisa immediate milega ya usko bhi 60 age k bad pension hi mikegi. Plz confirm
Immediately. Please see th-cam.com/video/w0ih8scnEz4/w-d-xo.html where we have answered the most commonly asked questions on NPS
Please compare NPS Vs Mutual Fund.
Will Etmoney provide any physical documents.
& Second when will start the monthly basis investment in NPS ?
I want to invest in NPS plz advice.
You should have also conveyed facts about 60% withdrawal which people have also commented. So in my opinion that does not make it a better retirement option. You do not want to leave your 40% of your NPS fund to come in instalments which is a staggering amount once you have retired.
Kya hum dono plan le sakte hai
Yes
If you have EPF(8.5percent) account, then don't even think of these PPF or NPS(7to 7.5percent) schemes. EPF can be withdrawn any time but these two you can't
Both can be withdrawn in special functions like marriage, house construction or repairs or higher education
Although NPS hope to gives better returns , but if at maturity age, say 60 yrs, if market is low like corona epidemic, what about maturity amount.?
Beyond 50 years, the portfolio will start gravitating to more debt than equity per the PFRDA rules. Watch this video for more details: th-cam.com/video/B2Im6jO8tGk/w-d-xo.html or visit PFRDA website
On my retirement will I get 100% corpus amount or 60% of total corpus
In case of non-government (private) investor, at the time of withdrawal from tier 2 account, is whole amount withdrawn (principal + ROI) taxable or only ROI? Is taxability based on individual's applicable tax slab?
Hi,
Only the gains made are taxable and yes tax is based on the tax slab you fall in
Can NPS/PRAN tier 1 be used for tax saving
Above 1.5lakh upto 2lakh if you have other saving upto 1.5lakh
Yes. You can do that. Watch our video on ETMONEY Answers where we answered the most commonky questions on NPS
Atal pension Yojana Aachha hai ya NPS Aacha hai
What if person demise in between lock-in period.? What happens next ..??
the lumpsum of invested amount with interest is given to the spouse, else to the nominee
Hi, Is there any cap on NPS investment per year?, incase of PPF it is capped at 1.5 lakhs per year. Because I am planning to start NPS with 2 lac per year.
No cap, but tax benefit is limited.
Wanted to check something, say for example I am 40 , I start with a SIP of 10,000 initially , and for some reason I want to change the SIP amount to 2000 after 6 years , whats the possibility ...can this be altered / modified
Yes you van alter, change or cancel your SIP amount anytime.
Very good information
Thanks dear for valueble awareness..
It's my pleasure 👍
Sir can we withdraw amount from ppf for personal use
Hi. There are some conditions around this. www.businesstoday.in/latest/economy/story/ppf-withdrawal-rules-5-account-rules-you-need-to-know-330665-2022-04-21
What about risk sir
Hi,
I'm definitely convinced with the idea of NPS over PPF. I've gone through NPS in ET money App. There is only a lumpsum option, however the monthly option is "coming soon".
When can we expect the monthly option to be available in the App?
Thanks
Anurag.
Hi Anurag,
We will be launching it very soon. Stay tuned
Sir, I want to invest my mother's money 12,000 per year, my mother is 45+ years old. Between PPF and NPS which one is good?
I am from Odisha I am now open a NPS account in chennai after 5 years can I Transfer Odisha if any problem please tell
Can one person have both NPS and PPF accounts?
Yes
Super explanation sir tqs
Sir can we get both nps and PPF
Yes, you can. Lots of people invest in NPS and PPF
You deserve more subscriber
Thanks! Btw, we crossed 50,000 subscribers last week :)
Now my salary is 30k per month, so I will invest 3k per month, what if my salary becomes 50k can I invest 5k by changing it.???
Your contribution is voluntary, you need to invest the amount you are comfortable with. if you are asking your employer to contribute to NPS then they will invest 10% of your Fixed salary+ DA. Eg - if your salary is 30K it will have a basic salary and DA component with somewhere let's say 10K then the employer will add 1K to your tier 1 NPS account.
Super explanation boss
Thank you so much 🙂
What about 60% withdrawal and rest 40% in annuity
Can i open both
Yes
Can we buy both nps and ppf and get tax exemption of 1.5 yrs individually for both i.e 3 lkh per yr together ????
No, You can have max exemption of 1.5 Lakhs only.
You can put 1.5 lakhs in ppf and 50k in nps tier 2 then you can avail benefit of rs 2 lakhs in one financial year
@@thesonu0406 hi, if one's 80 c limit of 1.5 is already covered in other instruments, and then one takes NPS..can he claim in the 50 k extra section?
Hi, Make a video of Active and Auto choice in NPS.
Yes, it will very helpful
Thank you sir!
You are welcome!
Pl give an update post budget 2021
Sir nps me maturity amount sirf 60% hi diya jata h.... clarify this
Yes
60% as a lumpsum, rest 40% comes as pension on monthly basis from the AMC that u will choose.
PPF and NPS can't beat inflation rate. Invest in ELSS if one invests for the same 15.years, ELSS profits beat all the inflation and also tax braket. Even if you pay the tax o profits, you would get hefty amount more than PPF and NPS.
NPS Tier 1 mein annually deposit karne se return zada Milega ya phir monthly deposit karne se return Jyada milega
nice information. Subscribed.
He did not mentioned only 60% of nps money can be withdrawn after retirement and rest of money need to invest in anuity.
Please watch our ETMONEY Answers session we conducted on 16th Jan 2021 on why that is the case. The session has answers to most common questions that have been asked on NPS.
Simple and superb explaination 👍
Thank you 🙂
Nice one 👍
Sir, Pl confirm once again. Is the whole income from NPS, Tax Free ?
60% lumpsum payment is tax free. 40% that goes for annuity plans is taxable.
Can we invest in both
Yes
Thank you for the details. Appreciate it!