Invest In NPSIf you want to invest for your future, then National Pension Scheme can prove to be the best option for you. The National Pension Scheme run by the government is considered to be very safe and a better way of investment, so that you can make your post-retirement life financially secure.
NPS is a voluntary contribution scheme in which the subscriber can opt for a higher ratio of equity as compared to debt. It enhances the returns due to investment for a long period of time. After maturity, investors can withdraw 60 percent of the amount in one go, while the remaining 40% of the value amount can be invested in annuity so that you can get pension continuously.
For example, investing 60 percent in equity and 40 percent in debt can give an annual return of 10 percent to NPS investors. If you invest Rs 10,000 in NPS every month for 30 years in 60 per cent equity and 40 per cent in debt, then as per estimates, you can expect to get Rs 1.36 crore on maturity. Withdrawal of 60 percent at one go and the remaining 40 percent can get a pension of Rs 45,587 on investment in annuity plan.
If the investor takes a systematic withdrawal plan (SWP) of Rs 1.36 crore for 25 years, then Rs 1.03 lakh will be available every month along with pension separately. That is, the total pension amount will increase to Rs 1.5 lakh. Investors who invest in NPS also get tax exemption.
In the last 12 years, the National Pension Scheme has given annual returns to its investors at the rate of 12 percent. Where the average return on mutual funds is 12 percent. Investment in government securities and 9.59 per cent returns on investment in government securities and 9.59 per cent, whereas investment in government securities and corporate bonds has yielded only 9.9 and 9.59 per cent. If someone wants to invest in the National Pension Scheme, then the sooner one starts, the more profit he will get.
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