Archive for the 'National Pension Scheme' Category

EPF vs NPS which should you choose?

Say you are an employee earning Rs. 1 crore and Rs. 2L is going to your EPF account, now you have a choice of putting more in EPF or starting an NPS account which one should you choose? Well, it depends! Let us assume you have a Rs. 5 crore equity portfolio and a Rs. […]

NPS is still a lousy product…

It is funny that the NPS is compared to the PPF and not to a mutual fund. If it was compared to a mutual fund, we would have expected to get indexing while calculating the tax. Because it is NPS we do not expect indexation. After all our EPF and PPF do not have indexation, […]

Products to avoid for Retirement Planning

This is really a very brave post that I am attempting, caveat emptor. Buyer Beware. Clarification No. 1: the past is not a great indicator of the future. What happened in the past may / may not happen in the past, and the growth trajectories could be lower. For example the YTD on Nifty as […]

Should you invest in NPS?

I do not like NPS, as I think it is a technically flawed product. What is the technical flaw? It is a GOI product and to me that is too risky. I am happy to stay with one GOI product named PPF, so why should I choose one more? Good question. However if I have […]

How does Gift a Pension work?

Yesterday you read about How you can help your domestic help / driver / peon in the office…start saving some sensible money towards a pension, here is how Gift a Pension works: It takes the objective of “financial inclusion” to each of our doorsteps. And very conveniently, at that. It enables individuals like you and […]

Why NPS is a bad idea

Well at the Cafe Mutual’s annual event in one of the sessions where the title was ‘How to Grow the Mutual Fund Pie’..Mr. Gautam Chikermane the moderator asked the IFAs..the classic question: WHY DO YOU GUYS NOT SELL NPS? It is the world’s cheapest mutual fund…and it is the best product for your customers. Well, […]

How NPS can be dangerous

Too many people in the media are obsessed about fund management costs. This is not a bad thing – after all this is the ONLY thing to which we retail investors have access, right. Fund managers on the other hand (ok the 3-4 fund managers who I have spoken with and who have over the […]