Really commendable to see that way it came out.. amazing to hear Mr. Sriram Iyer and kudos to Anupam Ji for getting such highly intellectual people on your podcast. Legacy of knowledge !!!
Imagine you are investing 1 lakh every year (50K self and 50K employer) starting at the age of 25. By the time you reach 40, you stop working, and by 50, your account has grown to 2 crore rupees. Now, what would you do if you have a medical condition? How much can you withdraw? You would only be able to withdraw around just 2 lakh rupees, leaving you to struggle for medicine despite having an NPS balance of 2 crores. This is the most frustrating part of NPS-the 25% partial withdrawal rule-that I truly dislike.All will assume that they will get 25% of total balance in case of emeregency but that is not the case and it is 25% of what you actully put as self without any intrest
If a person lack financial discipline or not experienced enough to handle market crashes, then NPS is the best option. In all other scenarios, NPS is a poor investment choice.
That is where health insurance comes. It should be a combination of NPS (for retirement) + Mutual funds (long term goals) + Bank deposit (emergency fund) + term insurance (to protect your family it anything happens to you) + Health insurance (large medical expenses).
@@nithinsatheesan Your point is valid. But it seems MF iteself will be a better option to cover both retirement + long term goals as the outcome of NPS will be always less than Mutual fund.
@@bharathraj8176 Your point is valid, but it will only affect people who need a lump sum amount at retirement. If we opt for SWP in mutual funds, I believe it will still yield better results than NPS. Additionally, I don't like the 60:40 maturity option. At the very least, there should be an option to pay tax on the 40% and redeem it or choose an annuity based on the investor's preference.
Everyone calls NPS a low-cost option, but I'm not sure in what sense. In mutual funds, we only pay 0.001% STT, with no other charges. The expense ratio is already factored into the daily NAV, so the XIRR reflects the return after expenses. However, in NPS, units are deducted from our account as fees, so simply comparing XIRR with mutual funds is not sufficient.
No one is giving alternate to 40% annuity option. If i plan my annuity with higher % and at low cost, then y my rest among 40% corpus remains locked in return? Can somebody help that out plzz.
Can NRI from America invest in NPS if they have their NPS accounts opened when they were in India , this becomes more important if NRI are deciding to retire in India
Nps tier 2 does not tell clearly about tax implications on withdrawal . This is a grey area. Next is annuity part - fix pension is an issue . You will get same pension on first month of retirement and even after 20 years of retirement which will very very less at that time…
Problem with u anupam is u speak more and unnecessarily interfere the speaker.... Like in this case When ur guest was speaking of nos2 u didn't allow him to talk n explain... U started taking..... Mm
Really commendable to see that way it came out.. amazing to hear Mr. Sriram Iyer and kudos to Anupam Ji for getting such highly intellectual people on your podcast. Legacy of knowledge !!!
This is by far the best video I have watched on the topic of NPS. Thanks so much to both the host and the guest. This is really helpful.
One of the best eye opener on NPS from the actual fund manager itself.
V😮😅03
One of the best videos I have come across regarding the features of NPS
clear my all daubt about NPS ..thank both
Imagine you are investing 1 lakh every year (50K self and 50K employer) starting at the age of 25. By the time you reach 40, you stop working, and by 50, your account has grown to 2 crore rupees. Now, what would you do if you have a medical condition? How much can you withdraw? You would only be able to withdraw around just 2 lakh rupees, leaving you to struggle for medicine despite having an NPS balance of 2 crores. This is the most frustrating part of NPS-the 25% partial withdrawal rule-that I truly dislike.All will assume that they will get 25% of total balance in case of emeregency but that is not the case and it is 25% of what you actully put as self without any intrest
If a person lack financial discipline or not experienced enough to handle market crashes, then NPS is the best option. In all other scenarios, NPS is a poor investment choice.
That is where health insurance comes. It should be a combination of NPS (for retirement) + Mutual funds (long term goals) + Bank deposit (emergency fund) + term insurance (to protect your family it anything happens to you) + Health insurance (large medical expenses).
@@nithinsatheesan Your point is valid. But it seems MF iteself will be a better option to cover both retirement + long term goals as the outcome of NPS will be always less than Mutual fund.
@@DennyJohnywhat if LTCG increases to 30 or 40% in future? I bet NPS will be safe since it's a govt scheme
@@bharathraj8176 Your point is valid, but it will only affect people who need a lump sum amount at retirement. If we opt for SWP in mutual funds, I believe it will still yield better results than NPS. Additionally, I don't like the 60:40 maturity option. At the very least, there should be an option to pay tax on the 40% and redeem it or choose an annuity based on the investor's preference.
thank you kind sirs
Everyone calls NPS a low-cost option, but I'm not sure in what sense. In mutual funds, we only pay 0.001% STT, with no other charges. The expense ratio is already factored into the daily NAV, so the XIRR reflects the return after expenses. However, in NPS, units are deducted from our account as fees, so simply comparing XIRR with mutual funds is not sufficient.
what happens if someone with NPS settles abroad and decides to retire abroad? Is there any way to redeem the funds?
What happens to the annuity corpus after the death of the individual? Does it go to nominee or it's not accessible at all?
This was really helpful!!!
No one is giving alternate to 40% annuity option. If i plan my annuity with higher % and at low cost, then y my rest among 40% corpus remains locked in return? Can somebody help that out plzz.
Very good episode, packed with information, host should talk less IMHO
How will you compare with ETF which is also lowest cost investment and much better from tax point as well.
100% agree
Can NRI from America invest in NPS if they have their NPS accounts opened when they were in India , this becomes more important if NRI are deciding to retire in India
Very cumbersome application and processes too are very complex.
Not a single professional should have NPS .
I have opened a NPS account at the age of 67. Anything to comment on this.
You are doomed
Nps tier 2 does not tell clearly about tax implications on withdrawal . This is a grey area.
Next is annuity part - fix pension is an issue . You will get same pension on first month of retirement and even after 20 years of retirement which will very very less at that time…
Problem with u anupam is u speak more and unnecessarily interfere the speaker.... Like in this case When ur guest was speaking of nos2 u didn't allow him to talk n explain... U started taking..... Mm
Rubbish , what about 50% market correction
Stop interrupting