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Sir I have to invest money in matual fund but for only 5years so please suggest me whom I go for opt matual fund so that it will give me good return.....
Thanks Mandeep. Really enjoy your videos. I think one thing you missed while calculating the overall corpus at the age of 60 for NPS is the additional tax saving component for NPS over 1.5L 80C. I invest in NPS just for that sole purpose. So if I am investing 50K annually (which is the max exemption) in NPS, it saves me 30% tax (depending on the tax bracket). If I invest that 15K tax saving in mutual funds, then at a 12% rate I will have an additional lumpsum of around 50-60L at the age of 60. This will help us compare NPS to ELSS more realistically in terms of the lumpsum amount at 60.
In fact the companies (not all) offering "Corporate NPS", i.e. 80CCD (2) to it's employees, the tax exposure would be further reduced depending on the tax slab. It is worth mentioning here that there is absolutely "no cap" on the amount that can be invested monthly provided it's falling under maximum 10% of basic salary requirement. I think investing in both Corporate NPS, 80CCD (2) and additional 50K, 80CCD (1B) would be a wise choice to reduce the tax exposure significantly in the course of building retirement corpus.
@mandeep Please include this also in the calculation as 30% tax saving on additional 50k in a long run or investing remaining 35k somewhere else after paying 30% as (15k) tax.
Nice example, but this will help to those folks who understand , investing the savings. But the above video is a simple exercise. this should help people to invest in both NPS and ELSS. Diversification and long term.
I think his video is one sided to ELSS as it's a paid video by Groww, hence he increased the Interest rate in ELSS multiple times, it's nowhere mentioned that in NPS i will only get 10 percent only.
@@Sabbanwar bro, if we contribute self, along with additional benefit of 50k exemption can we also get exemption under 80C if we contribute over n above 50k??
Higher annuity by ELSS is based on assumption that it will give 2 percent extra return than NPS. What if both give same return of 10 percent, keeping low expense ratio of NPS in mind. Viewers please compare it also.
Of course, couldn't agree more. I tried keeping the numbers realistic. 12-14% from ELSS is what's expected. And yes, there's no denying that ELSS carry higher risk than NPS, which is why it was necessary to mention the last part about how to properly disversify between equity and debt based on the age
@@LabourLawAdvisor Please cover the same considering 50,000 extra tax deduction . If someone is in 30% Tax Bracket he/she will end up paying only Rs 2100 as he will save on Rs 900. So Keep the investment as Rs 2100 only for NPS. Also deduct 30% on the total net Amount you get in ELSS then have a fair comparison .
I have watched this video twice.. and came to conclusion. NPS : 50,000/- ELSS/EPF/PPF .. : 1,50,000/- Diversified MF : 50 - 60 % Emergency Funds : 2-5 Lakhs/- (depending on req.) Health Insurance : 20,000/- Life Insurance : 10,000/- Stocks and Experimental : 5% and Live Some Life for yourself.
Hello sir, i am aditya rai and was thinking to do some investment on my mother's name for her future. Can you suggest me that should i open her NPS account or invest in ELSS for her. My income is less than 2.5 L. I hope you have understood what i am trying to say. I will be pleased if you reply me.
If a Person who is able to complete 1.5 lakh of investment u/s 80c without considering NPS. And he is taking additional benefit of 80CCD for additional Rs.50k then NPS is equally good option in terms of returns. See below calculation taking reference from ur illustration. You hv considered Rs.3000 monthly contribution towads NPS. As a result you will save Tax of 30% on Rs.3000. Therefore Tax saving comes to Rs.900 and if u invest the same in any MF scheme @ 12% return for 35 years of investment. You will end up generating wealth of Rs.50 lakh. If you hv noticed in your illustration you mentioned ELSS is generation Rs.60 lakh more returns. Now the gap is reduced by Rs.50 lakh and will come to ONLY Rs.10 lakh. Plus NPS has other benefits of diversification and reducing risk across Equity and Debt
Same thing came to my mind also. And, one more thing I want to add into it that not only we can save tax @30% on invested amount i.e 4,166.67×30%×12 = Rs 15,000 of tax saved Rs 50,000 deduction u/s 80ccd(1b). Plus, your tax slab can also be reduced because of nps and this will have impact on all over your income you pay on tax as per slabs for so many years and you can invest this amount in equity or mutual funds also to generate higher return in future.
You are right. But hardly anyone is that disciplined enough to invest the taxes saved in MF. (Don't get me wrong, I'm not saying they won't invest in MF, im just saying they are more likely to forget about the tax saved and may not invest 900 additionally in MF) That said, i do understand that hardly anyone will be disciplined enough to follow the ELSS route too, because one will always have the option to withdraw (which can be tempting). Also, NPS is more secured and there's no denying there. There are a lot of assumptions in both of our approaches. I just want people to start thinking in these lines and become more aware, like you
@@LabourLawAdvisor For a person who has utilised complete limit of 80c and is getting opportunity to invest in both 80 ccd (1a) & 80 ccd (1b) investing in NPS makes much more lucrative. What's your opinion on that..? Have you made any comparative video on Superannuation Vs NPS...? And what if to do both if person is under 7.5 lac annual capping (Employer EPF + Employer NPS @ 10% of basic + Superannuation @ 15% of basic). Would like to watch it. Thanks
Rightly explained. In addition to this, if someone's employer is eligible for 80ccd2..than individual will get additional tax benefit ....NPS is good for investing under 80CCD2 and 80CCD1B
Nice analysis, one suggestion though, you should increase the contribution in NPS by 30% of 3000 per month taking into account the tax break up to 50,000 under 80CCD(1B). Also even though ELSS is assumed to give better returns because of 100% equity, the risks and fluctuations are correspondingly higher
Same thing i was thinking...good advertisement for groww but if we see reality than NPS seems better for present tax we save. Also people can see the drop we got in market for covid..it has scared hell out of many and some lost all there savings and pull out the money left due to uncertainty We can do one things though..spend some amount in NPS and whatever tax we save we can put in ELSS so double benefits 😅
@Piyush caught super point, as he said, considering above example 3000 NPF every month + 900 (saved tax under 80CCD(1B) in ELSS/Equality Stocks) with 12 percent returns will give 11484831 + 5261168 (after tax) = 16745999 - and why NPS is just 10% where ELSS is 12 !
Absolutely misleading. Consistently we will never get 12% or, 15 % rate of interest. Now a days 6 % is also difficult. So this is rubbish to think ELSS brings you fortune. Many time your principal amount itself gets eroded. Depending on liquid fund after retirement is highly risky. See what happened in Franklin Templeton Debt funds. Principal (investment amount) itself become zero. So do not believe this at all. Secondly Annuities are with gurantee and for lifelong . Hence peaceful. How you are misleading by saying NPS Returns are at 8% whereas ELSS gives 12% or, 15 % Returns. At least you should take same rate of return. Many times actually some ELSS can give less return than NPS. Actually it is safer to calculate at 6% only. Liquid funds Returns are fluctuating. May be at times it can give 4% also. Just slightly more than Savings bank interest. For direct investment one should be knowledgeable. Many unscrupulous advisors only mess up the things. People should be grateful.
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
Completely agree, for retirement I would advice to go with aggressive nps if less than 30 and move to low risk with age or when you feel market is not good
@@RealThingX0 start reading and learning on Cooperate Bonds, Govt Bonds and investment some part of savings in bonds of good stable company you may get 8.5% to 11% return to your account directly on monthly, yearly, commutative as you choose while investing. NPS is good if compared to ELSS.
The best part about NPS is its lockin. It leads to discipline, which our parents used to have while purchasing LICs. ELSS is liquid after 3 years, thus the chances are high that the person will not have it maintained for 35 years.
Good analysis and crisp video👍 Few suggestions: I have seen NPS giving 11-12% between 2011-21 period and has better tax features. ELSS can drop below 10 also (can go to 15%, as you mentioned). Flexibility in ELSS at the time of retirement is a big plus. I liked your analysis and point on Liquid funds instead of an annuity.
@@a.yashwanth Congratulations...Bhai m 36 , started working since 21, but I wasted 13 yrs of my life by not saving my hard earn money...May god bless you so that you will at better stage once you reach my age..👍
As mentioned by other viewers in the comments section , NPS provides tax rebate on employee plus employer contribution. Please do consider that in the next video or in the calculator itself.
NPS TIER 2 vs ELSS would be interesting in terms of projected returns, as NPS TIER 2 allows anytime widthdrawal & can be switched to have less exposure to equity when desired.
2 points are missing out here. 1) Extra Rs 50000 tax benifit on NPS. 2) 8% & 12% are main differences here. Risk factors, more returns more risk is another factors
NPS is Aggressive Hybrid (75:25) till age 50, then Balanced Hybrid (50:50) after age 50 which is a rational Asset Allocation. No investor can keep 100% into ELSS Equity right till retirement day. He has to maintain a proper Asset allocation. Hence 12% from ELSS is too enthusiastic.
This is a hypothetical comparison; if you understand the difference between high risk and low-risk financial instruments. Basically, you cannot compare money from the Demat account with the saving account.
Hypothetical comparison with hypothetical positive assumptions only. Not a single risk assessment has been done here. Bluntly suggested to invest in equity more despite knowing it's volatility.
@@LabourLawAdvisor you are assuming return 12% from ELSS but from NPS you said 10%.Are you a joker because All ELSS having expense ratio more than 0.5% and in NPS it is 0.01% You are more stupid than rahul gandhi if you still say 10% of NPS and extra 50000 tax savings is still not calculated.
@@RahulYadav-mm2ho If you don't have complete knowledge on expense ratios of mutual funds, don't start bullshitting everywhere. If you have genuine query, then ask. Typical Indian mindset of bullshitting that everyone is thief/fake/liar etc. without providing any proof. The daily NAVs which are published are INCLUSIVE of expense ratio. So you don't have to subtract 0.5-1% fees from annualized returns. Annualized returns are calculated on change in NAV and since everyday NAV values are after deducting everyday expense ratio, no extra calculation is needed. Only thing to care about is using direct mutual funds.
Sir Age factor is important in your calculation, you have considered 35 years of maturity period in which ELSS can beat NPS even after LTCG, but for 20-24 yrs period NPS seems to be good option because in ELSS LTCG will bring down it's maturity amount, it will be less compared to NPS corpus, please correct me if I am wrong.
You can't exit NPS before 60 years of age. If you exit before that it will be considered as premature withdrawal and you will only get 20% of the total fund in your hand and remaining 80% shall be invested in annuity mandatorily.
@@arorakirti Generally people investing in NPS are aware that it's a Pension scheme therefore very few people will think to withdraw before 60yrs of age
@@gc19208 Yes, but those who will withdraw before 60 years of age will get only 20% of the total corpus. So, this option is not for them. They should either go with safer PPF & EPF or if want to take risks then MF or NPS Tire 2 A/c is already there, but then forget about tax free corpus...
@@gc19208 Yes, then NPS is not for them. Better to go with safe EPF & PPF or they may go with NPS Tire 2 A/c or MF. Can't say about ELSS. But then forget about tax free corpus. My previous reply comment having same points has been deleted. Someone don't want me to tell the reality.
Good narration but, I mean BUT couple of points - 1. Investment in NPS (when chosen via corporate or government) is over and above 80C exemption whereas ELSS is only expempt within 80C. So if I am already having investments taking care of my 80C, ELSS is NOT lucarative. Infact, then it is not even an option. 2. Basis the above, assumption is that throught my lifetime, I will be able to take exemption under 80C 3. For returns, Its again based on Assumption. The assumption of NPS on an average giving 10% and ELSS giving 12%. Higher returns come along with higher volatility. And when it comes to near retirement age, having great money in Equity is NOT a wise option😎
Thanks Mandeep, Its quite helpful... Please do make videos on good 5/10 years investment plans whereby you can withdraw money after 5 years or 10 years...matlab ke short term investments, Thanks again !!! Keep It Up...
Go for ulip if you don't have term plan, if you have term plan than go with elss. Let me know if you want to get help in buying any investment product. I am a Financal Consultatant and can help you to buy one
Totally misleading. As far as tax savings is concerned, ELSS comes under 80c, while NPS comes under 80ccd. That means, NPS is more tax efficient than ELSS.
Hi bro, all your videos are very helpful. I am from Kerala. I understand hindi, but many of my friends dont. I kindly request you to add English subtitles to all your videos so it can be understood by non-Hindi speaking people too. Also you will get more views and subscribers.
While comparison don't depend on web calculator. NPS and ELSS both are market linked. So 12 % with ELSS and 10 % of NPS would be same as we have 75 % allocation in equity and rest in debt. Also do consider 50k / year for NPS and 35 K / year for ELSS and 15 K would be taxed / year. If you do so . In ELSS we would be having 37 Lac after 22 year. While in NPS Corpus would be 58.5 Lac ( 35 Lac without tax can be withdrawn and rest would be used as annuity.
Investment benefits would be based on tax bracket. For 30% bracket actual investment amount after considering tax rebate would be 4285. It would give you maturity amount 1,70,84,871.
Actually it's still a good product if you have exhausted the 1,50,000/- under 80C and fall under 20% or 30% tax slab. If it's just 5% then we can just pay tax and relax
I will still say go with nps only.. he manipulated all the data. And do not talk about 80ccd and lot of other human behavior stuff.. this video is sponsored. Save yourself
When you consider accumulating retirement corpus through equity mutual fund route, why shift to liquid fund, why not just start SWP from the same equity fund at around 7-9% per annum of the fund value at the beginning of every year. The fund shall keep growing and cash flow shall take care of inflation too. If your risk appetite is bit less consider shifting to equity oriented balanced fund through STP during last 3 years before retirement. This will also lessen the tax burden on regular pay ins as also headache of complex tax calculation associated with liquid/debt funds (index calculation, etc)
I have handled one NPS retirement case of a employee.. all plans are available with all the listed annuity providers... at time of retirement you have to select Annuity Provider and Plan.... as per choice upto 60% amount directly goes to your Bank Account from NPS... remaining amount goes to Annuity Provider.. Next month pension will start seamlessly.. Only thing I noticed is if you are in NPS for less than say 20 years with normal or subpar contribution, then, after withdrawing 60%, you will get very meagre pension... NPS likely to have decent compounding only after 20+ years horizon
Great video. Would be great if you can compare between ELSS and other Mutual Funds. If someone has exhausted their 80C, which would be better ELSS or other Mutual Funds. Does the extra lock in period help the fund managers to generate better returns in case of ELSS?
NPS is for retirement. You just can’t withdraw your pension money. Most of us don’t have the the discipline to contribute and remain invested for long term and ultimately loosing money. So, you can’t compare NPS and ELSS. You can use ELSS in place for PPF
You seems to have bias in favour of ELSS vs NPS, should have also highlighted the risk associated with ELSS vs NPS. Just a suggestion, anyway great effort!
@Aman singh 1. we can try for higher return in Nps by having max equity exposure allowed. That means the returns of Nps and Elss wont have much difference. 2.Also the expense ratio in nps is lesser. 3. 16k tax is saved by Nps if 30% tax slab. So we have to consider the investment of that 16k for those many years.
1. Generally NPS give more interest in fact compare to ELSS. 2. Low expense ratio 3. Rating of ELSS keep changing, NPS is evergreen 4. Person tend not to discipline toward elss. 5. Due course of time govt will make NPS more attractive
Hello Mandeep.. Really very informative n encouraging video for not only investment but also for retirement..ye equity n debt me jo apne last me kaha usme thoda confusion ho gaya..plz ye equity n debt ke bare me mns relating with age n %of investment ko lekar thoda samjaiye..n 1 kind request..can you go little bit slow..thoda speedy ho jata he..but ofcourse video bahut achha hota he..
You forgot to include addition tax savings of 15k/10k annually if a person falls under 30%/20% tax slab, considering 50k/year as per 80ccd1b. Also there is a provision to make 10% of your basic salary taxfree by asking your employer to contribute towards NPS.
For upto 5000 / month pension , Atal pension Yojana is the answer, monthly contribution will be acc to age you are right now, Else if you need more pension open NPS acc and increase your monthly contribution by 10% every year.
NPS makes you more discipline in investing for your retirement strictly whereas in ELSS we tend to withdraw money for wants.... Moreover, NPS is more diversified and secure than ELSS.….Tax benefits also we should consider....A retirement plan is a retirement plan strictly
Agreed, i did mention the discipline fact. And i also mentioned that retirement plan is just part of your investment. You should have other investments too.
There are few more points that we should consider actually: 1. ELSS tax saving is part of 80C which is limited to 1.5 L which is very narrow considering your EPF and almost all other tax saving investments are part of 80C basket. So, ELSS is beneficial in tax saving terms only if your EPF is very less and you do not have any other 80C instruments already. 2. NPS has 50k extra limit to get tax exception under 80CCD 3. NPS for corporate scheme allows you to invest up to 10 % of your basic pay additionally (over and above 50k under 80CCD) 4. ELSS and NPS both being market linked and similar to MF, in your calculation you have considered 10% return for NPS while 12 % for ELSS, so it is natural elss amount will be higher for a long term investment. Isn't it ? 5. In my view ELSS is good from blocking period and control perspective but if tax saving is the key moto of your investment then NPSS is always a better investment with higher investment limit and EEE category.
Just saw your vedio of Data Entry scam thank you for awaring us. I need an advise. Recently I've quit my job without proper resignation or prior notice period but as per the agreement if we leave the job without any prior notice then we won't get the experience letter and even my company can take a legal action against me. Can you please suggest me how can I get my experience letter and P. F. money.
The percentage numbers way too unrealistic. Also, with the economy reaching its peak, near to developed economies in next 20-30 years. The rate of return will only come down. Yes, equity is the way to go for long term and I'd go with an equity based fund for retirement planning, but I'll take a much safer 9-10% return in my calculation to budget and plan better for future.
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
As there is lock in period of 3 years in ELSS funds, so period of investment should be taken 32 years in order to withdraw amount after 35th year. So considering this the maturity amount may be less than shown in this analysis .Also plz incorporate percentage increase in the SIP each year accounting for increments in salary in case of salaries persons
Mandeep , you are doing a great job!! Keep it up! Only thing to add here is the salary bracket ,as this will be an amazing comparison for someone in the tax bracket of 10-15% plus for the one who has not already exhausted their 80C contribution. But for someone in tax bracket of 30% and already making contribution towards instrument available in 80C , the comparison will be just upside down ,given tax saving on NPS under Section 80CCD(1B) and reinvestment of saved tax to the same ELSS. :)
Totally biased video... I think Groww has compensated you for this. 12% or 15% return in ELSS is totally impractical thinking, pls don’t make such videos, I have high hopes from you based on your previous videos. FYI i am investing in ELSS since 6 years.
Few factors also to be understood 1. NPS has up to 50K tax exemption under 80CCD other than 1.5 lakh of 80C at present (old scheme), ELSS doesn't offer that, it's included in 80C 2. ELSS attracts LTCG tax (above 1lakh/yr) and also has 3yrs lock-in 3. ElSS are risky as these mutual funds mostly invest in equity market 4. NPS gives you better control to select where your fund is invested, this includes combination of debt and equity funds, you can opt according to your risk appetite. 5. Mutual funds for very long term are very risky if AUM defaults, recently we have seen some fund houses couldn't payback due to market crash, NPS higher security in longer terms, of course with lesser benefit, but it's not very big. These are my understanding about NPS and I've opted for NPS Tier 1 and Tier 2 both. Read about these categories in greater detail before making your retirement plan.
1. For anyone looking to save get deduction beyond 1.5 lakh, they can still put 50k in NPS to take that benefit while contributing more towards NPS 2. Yes, tax is covered in detail 3. ELSS may carry greater risk, but for very long term, they do fine. 4. All I'm trying to say is, if you just ignore the NPS combo and make your own combo, you can get more returns without increasing the risk. You can put money in ELSS, other MF, debt funds, govt bonds, etc. NPS fund performance, (especially equity) is not that impressive. 5. Those would be debt mutual funds (Franklin). Money is not lost, it's just delayed because they carry a risk called liquidity risk. This shouldn't concern you because in NPS you anyway can't withdraw money before 60. If the goal is long term, liquidity risk minimises. I'm not denying that NPS is good, I'm just saying if we stop exploring, we stop earning
Hi, Great video. I feel you missed a major factor while doing the calculations of NPS vs ELSS that is.. NPS investments also provide you tab rebate. So whatever amount is being accumulated under ELSS should first be reduced by 30%. After taking this into account, there is not any significant financial difference in both modes. (except that you have more flexibility in case of MFs). Infact, NPS is slightly better.
Mere pass 2 suggestions hai:- 1.) ELSS me agar aap 35 years tak investment kiye SIP mode me to 35 year ke baad total paisa nhi withdraw kr sakte hai kyoki 35 year me jo investement hoga uske liye bhi 3 years wait krna hoga kyoki 3 years locked in hota hai. Means, 35 year ke baad investment band kiya toh 38 year me total paisa aap nikal paoge. 2.) NPS me 30% extra tax ka save krne ka benefit hai jo ki ELSS me nhi hai. Baki kitna % intrest milega wo koi nhi janta. ELSS and NPS dono market based hai.
ELSS comes under 80c. Whereas NPS gives benefits of 80CCD(1), 80CCD(1B), 80CCD(2). Now once your 80c is full, ELSS becomes useless. Whereas 80CCD(1B) & 80CCD(2) will be with you for further tax savings.
Suggestions for betterment of National Pension Scheme (NPS): Allow upto 100% investment in Equity Scheme. Within Equity Scheme option to allocate funds among Small/Mid/Large Cap mutual funds. Inclusion of Gold and Silver as investment option, via ETF/Bonds. Investment in Annuity Pension Plan optional, not mandatory. Option of 100% withdrawal of Corpus on retirement. Special Corporate Health Insurance Plan for retirees. Increase in employer contribution from existing 14% to 24%. Unbiased research from independent and reputed Firms/Institutions for discovery of better/improved Pension Plan.
With all due respect to your efforts and diligence, you have missed out a very important parameter! The expense ratio. In case of NPS it's (0.2%) really very negligible as compared to even any ELSS fund (1.5-2%). So if you want to keep calculations simple, you can keep expected return for NPS at say 12 percent and ELSS at (Expected - Expense Ratio). This just for sake of simplicity. Actual calculations may differ even further. Thank you! And Kudos to the content!
Thanks, but i think NPS @12% is pretty ambitious. However, 13% ELSS - 1.25% expense ratio seems more doable. So effective ELSS could be 11.75 ish Point Being, ELSS has the potential to give more returns than NPS, but it requires great deal of discipline since there's only a 3 year lock in.
Let's assume someone is on 40 and he comes under 30% tax bracket and he already take full benefit of 80c. Option 1: NPS: Now he choose NPS and invest 50k (4166 per month) so at the rate of interest 10% he will invest 10lakh and in return he will get 31 to 32 lakh after 60 and out of which he will get only approx 19lakh as . He also saved 15k per year as tax benefits which added approx 22lakh. Rest he will get regular pension like in the video. Option 2: He will pay 15k tax and invest rest 35k (2916 pm) in any perfoming mutual fund(not necessarily ELSS because he is already taking 8Oc benefit) or stocks directly. After 20 years, he will get approx 29lakh at the interest rate of 12℅ and 44lakh at the interest rate of 15℅.Also here he has the liberty to withdraw full money and invest anywhere he wants considering situation at that time.
Also if the company one works for provides NPS deduction...then an employee can contribute upto 10% of their basic salary which is eligible for tax rebate...unlike a cap in ELSS. So the above working is only theoretical ...NPS is much better as tax rebate during contribution is much higher.
I guess please consider two things 1. you've increased return rate for elss but not for nps 2. yes considering tax benefit, please calculate returns assuming 80c limit is already used due to other things
Main difference is tax saving in NPS, EEE. 50k can declare in 80ccd other than 80c & 10% of basic of salary also reduced as taxable amount if nps linked to salary. You can calculate it then campare
It's a great information of comparison of both instrument. But there is one more benifit in NPS U/S 80CCD 1B that could be used as extra saving for taxable income more than 1.5 lac in 80C. & Also if the employer allows there is one more option of adding 10% of basic + da in it that can be added in savings for taxable imcome. So if we consider both option nps can be use as additional approx 1 lac saving other than 80c(ELSS or PF). So we get 2.5 lac saving from our taxable income.
1. Why only 10% growth is considered for NPS, the amount is invested in equity market same as ELSS/MFs. (Yes, with 75% capping) 2. Expense ratio for NPS are in the range of 0.1-0.3. That should earn some extra points for NPS. 3. Also we get the benefit of extra tax saving on 50,000 under section 80CCD. There are obviously benefits for investing in ELSS (better alpha, shorter lock in period, no compulsary annuity etc) but you missed out above important points in the comparision video.
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Can there be another way. Let's say you don't buy annuity post ELSS. You switch it to conservative hybrid fund (saves tax) And then you set up a SWP for amount you want. The remaining amount stay invested earning returns. Less tax liability and post demise - transfer to nominee.
I had invested in both *ELSS* and *NPS* , I personally feel ELSS is quite better option, but keep in your mind when your 80C bracket is full (1.5 lakh) , then extra 50k under 80CCD1B works like charming, when you have 20% tax slabs then after tax refund you instantly get 10k which is 20% return itself, if your income is more than 5 lakh then NPS more fruitful , if less than 5lakh ELSS is better option.
Hello sir, i am aditya rai and was thinking to do some investment on my mother's name for her future. Can you suggest me that should i open her NPS account or invest in ELSS for her. My income is less than 2.5 L. I hope you have understood what i am trying to say. I will be pleased if you reply me.
While a good argument in favor of ELSS, you have not considered tax savings. As I understand, ELSS investment is only exempted under 80C limit of 1.5L which may already be surpassed if one has a Home Loan (principal amount exempted) and mandatory PF deduction, SSY, Life Insurance Premium etc. But NPS investments, both employer contribution at 10% max for private sector employees as well as employee self contribution up to 50K p.a. is exempt over and above 80C limit of 1.5L. Still, for anyone not using full 1.5L exemption under 80C in any year, it would be wise to channel the gap money into ELSS.
But in NPS if you are investing 50000 then every year 15000 savings in tax, now if you invest extra 1250 in elss that will be around 81lakhs in 35 years Now if you invest 50k yearly in NPS i.e 4200 monthly your total corpus will be 1.6 cr tax free and 81lakhs from eles after 10% LTCG 1.6cr +.72cr =2.32 cr
Reality check : Question : Tell one fund in India which has given a cagr of 12 percent in last 35 years? Answer : None Please stop showing inflated returns because it can have negative impact on a viewer who may take a wrong decision after being influenced by your inflated numbers.
And how many funds have been there in india for 35 year. Since India is a underdeveloped economy obviously the equity and debts markets are underdeveloped/developing. So there is nothing to compare to. Do you know that return in nps is also not fixed.
liked it bro, was thinking what to do with some buffer money, ELSS i have always discounted, but its good to know the importance, i was investing in Large, Flexi, Mid, Small and couple more, will add ELSS, and yes LIQUID fund is very good investment. I learnt from my VP Mr Sanjay Parekh sir, i thought to put in liquid fund, but this video helps to prioritize. Thank you Brother.
