Business: The retirement investment market is hot. There is a competition between government NPS and mutual funds. Both options have released new schemes and plans in the past months. Investors have also started including pension in their financial plans. Retirement planning with regular savings and long-term investments is now making sense.

Both mutual funds and NPS are good investment tools for retirement. With these, secure and stable funds and regular income can be ensured for the future. NPS i.e. New Pension Scheme was started for government employees and later it was opened for all individuals. There have been many changes in this, recently investors have been given the option of 100% equity investment for savings.

It is important to understand the difference
NPS gives the flexibility to switch between asset classes and pension fund managers, but ultimately one has to close it after reaching the prescribed age of 60 or 70 years, withdraw the money and take annuity as per the options chosen. Annuity is not indexed to inflation, meaning it does not increase as per inflation and it is also taxable. NPS is good for those who find it difficult to maintain regular investment discipline. Mutual funds are convenient if you can make regular investments, as there are many options. In mutual funds, you can choose the category of scheme as per your choice.