NPS vs SIP: Which Is Better for Long-Term Wealth Creation and Retirement Planning?
Planning your financial future involves making informed choices between different investment options. Two of the most widely discussed tools in India are the National Pension System (NPS) and Systematic Investment Plan (SIP) in mutual funds. Both have their own merits and cater to different financial needs and goals. In this comprehensive guide, we compare NPS vs SIP across various parameters like returns, tax benefits, liquidity, flexibility, and suitability so you can decide which one aligns better with your long-term investment strategy. What is NPS (National Pension System)? The National Pension System (NPS) is a government-backed retirement savings scheme aimed at providing regular income post-retirement. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and allows investors (especially salaried individuals) to build a pension corpus during their working life. 🔑 Key Features of NPS Mandatory for government employees, optional for others Inve...