Video explains benefits, comparison with MFs, PPF of National Pension Scheme for those considering opting for it.

National Pension System (NPS) or the NPS is a much talked about investment product for retirement. The NPS allows you to make regular contributions to accumulate a corpus at the time of retirement. This corpus can then be partially withdrawn and the remaining has to be reinvested in annuities for a regular pension-style income post retirement.

Here are some key points about NPS:

★NPS was first launched in 2004 for government employees and was later opened to everyone in 2009.
★NPS is similar to mutual funds, where investors pool their money together and hand it over to a fund manager to manage it professionally and deliver returns.
★There are two choices available in NPS: active choice and auto choice. Individuals can choose the option that suits their investment preferences.
★Investing in NPS offers tax benefits, making it an attractive option for retirement planning.
★NPS is also compared to other retirement investment options like mutual funds and Public Provident Fund (PPF).
★NPS has two tiers: Tier 1 and Tier 2. Tier 1 is a mandatory account for retirement savings, while Tier 2 is a voluntary account with more flexibility in withdrawals.

To learn more about NPS and its investment rules, you can watch the video above. It explains the percentage of corpus that can be withdrawn at retirement and the mandatory reinvestment. It also discusses the similarities and differences between NPS and mutual funds.

If you are planning to open an NPS account, it is important to understand the rules and benefits of investing in NPS. By making informed decisions, you can secure a comfortable retirement income through NPS.