NPS offers more flexibility than EPF as you can open an account without employer involvement, vary contributions, get added tax breaks, choose asset mix and manager, and earn market-linked returns. NPS is not employer-dependent and you can open the account electronically as an individual. NPS offers variable contributions and allows you to vary your contributions from month to month or even skip them. NPS offers added tax breaks and allows an investment of up to Rs 50,000 a year in the NPS Tier 1 account, which is eligible for tax breaks under section 80CCD (1B). NPS is transparent and its fund managers disclose NAV on a daily basis and its portfolio on a monthly basis. NPS offers a choice of asset and manager and you can decide on your allocation between equities, government bonds, and corporate bonds. NPS offers market-linked returns and has delivered returns of 12.5-13.7% per annum in the last ten years for equity schemes. By Coshorts
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