There so much noise on buy the dip or is it buying a falling knife…… blah and blah
Did not hear or read one expert telling retail small investor to increase their contribution to NPS
NPS by itself is an asset allocator and this product would be safest according to me where incremental money can be invested when markets show a small dip
The problem with NPS is that it’s part of the Babuji Enterprise, so you can expect all the red tape that comes with it.
From my own experience, I used NPS in the past for the 80C benefit. The last time I tried to log in, it said my account didn’t exist, but thankfully, I still receive the monthly statements, which is a small relief. I didn’t follow up further at the time.
Honestly, this is something I’ll probably deal with when I redeem it at 60 plus, and I’m fairly certain there will be more hurdles and paperwork to overcome just to get my own money back.
In contrast, my experience with ELSS through Zerodha Coin has been completely different. One simple redemption request and the money lands in my bank account within a day or two. Smooth, effortless, exactly what you’d expect in today’s modern world, no unnecessary hassles just to access your own funds.
I’m not trying to bad-mouth NPS. This is just my real-life experience. But if you’re not someone who enjoys navigating bureaucracy and obstacles, NPS is probably the last thing you would want to get into.
To answer why you don’t see anyone even mentioning about NPS maybe this: I don’t think anyone who truly understands the hassles involved would actually recommend NPS. ( Sorry for speaking the truth, but that’s just my real-life experience.)
Dhirendra Kumar Value research talks about it.
AMCs do not make money from NPS as much as MF, so they do not promote.
No one takes 30 years view on equity but real estate/gold gets decades on end. If gold drops 20% we don’t panic nor do we sell real estate even if post tax rentals yield less than fixed deposit.
Most do not buy the dip because we do not have runway to run the house with out panic for at least few years.
Mint newspaper used to run column in mint money on how fund managers (Guru Portfolio)manage their own money every one of them talks about having runway for at least few years. The masters keep few years in liquid but we miss this part hence the anxiety of market fall.
NPS has drawback too have to wait till 60. 20% annuity. Annuities make less then 5 years GSECS
I am much more diligent in investing NPS Vatsayla than in my own NPS.
PS: This made me look at protean the valuations look good.
Mutual funds (lumpsum/SIP) combined with SWP are a far better option than NPS. In NPS, your money is locked in until the age of 60, though partial withdrawals are allowed under certain conditions.
Considering today’s lifestyle and environmental factors such as pollution, war, etc. it is uncertain whether many people from the current generation will even reach the age of 60. It may sound harsh, but this is the reality. Moreover, many people these days are aiming to retire by their mid 40s, which makes such long lock-in periods less practical.
While the recent changes in NPS make it more attractive, a mutual fund investment with an SWP strategy still remains a more flexible and often better option. You can even verify the calculations using AI.
True SIP/SWP is superior but that’s assuming we are rational.
Once money in NPS its locked even if its war/recession we just give it time.
I check my investments more often than NPS, a part of the portfolio locked in NPS is good thing.
I hold 10% in NPS compared to 100% of my kids money, fallacies of my behavior.
The lock in. What’s in it for the government? Do they use these funds to buy FII selling?
Earlier people used to say the same about LIC, but nowadays, on the due date the maturity amount gets credited to my account. Need to ask someone who has tried to redeem their investment if they faced issues. As a contributor to NPS, till date did not experience any issues at all.
Is ELSS only equity or has asset allocation like NPS - Equity, Corporate Bond and Govt Securities.
Why is this a drawback, dont you think, the longer the time in the market, the better, interest free compounding on bond part will give a good corpus on retirement. The product is pension and they allow you to withdraw 60% of the corpus and the balance as annuity. The mix of 60% + annuity could be a reasonably good return if 60% is invested wisely. There was a talk to allow SWP on NPS from 60 years to 70 years. Hope this comes to effect for the full amount.
Is this a good idea, assume a person is openeing a NPS at age 30 or 35. Invest in bulk on this date, and then do periodic investment, Does this change the return instead of periodic investment over years.
This is true, the new generation, I do not think they have the patience, it would be nice to know at what age (average age) people actually start investing in NPS (if they do)
The Govt Bond portion might not get redemption pressure, I guess. Not sure.
NPS does not help early retirement.
It hassle to withdraw if something really goes wrong personally.
If Gov changes something for worst I have to accept it no contest.
Just look at EPFO its hassle to withdrawal, move and its often mentioned as masterpiece of bureaucratic complexity and i should trust them with my life savings?
Besides money is personal not every wants better returns.
My wife bought 1 acre of rice field for 40lkahs she leases and makes about 1000kgs of rice, which is about 60k-100k per year. Her reason is she does not have to bother about main source of food for long time. As long as she is fine with logic I am good too.
She always invests in gold during Akshaya Tritiya I wondered why she invests when prices are high she spends about 5 min pays no tax. Does not bother about US dollar, US interest rates or oil prices. Haven’t seen her panic or anxious of gold prices in all these years.
To be fare we need to have more diversity used to invest in US all market Navi fund because of limitations its no longer available.
I think it is supposed to have only Equity, ELSS - “EQUITY” linked savings scheme.The one I was on was the Axis Tax saver Elss, direct, growth, with 3 year lock-in.
Case in point: Government retroactively made SGBs taxable, when bought in secondary exchange… And that mind you, is without any emergency or war. Imagine what’ll happen, when government is really in a pinch. What’s to stop them from doing much more in NPS? They can say you must purchase 80% annuity and only 20% withdrawable and then even on that you must pay tax at the maximum tax rate. And you’ll be called anti national, if you dare to question that. Beware of government!