Should I choose NPS or increase my investments in existing Mutual Fund SIPs

I am investing an amount of Rs. 30000 through different SIP (Large, Multi and Mid cap) for a targeted period of minimum 15 to maximum 21 years for achieving my various goals. Now I wish to invest an additional amount of Rs. 8000 to 10000 every months, but I am not sure that whether will I choose NPS or increase my investment in existing Mutual funds? My investment horizon is about 24 years. I am 36 years old and worked in a Govt. sector, please suggest me?

Aug 16, 2016 by A Biswas, Nashik | Taxation

You should choose NPS only if you want to avail additional tax benefit of Rs. 50,000 under section 80CCD.

You may be aware that the Finance Minister announced an additional tax saving of Rs. 50,000 per year Under Section 80CCD of the Income Tax Act 1961 in the Budget 2015. This is over and above the amount of Rs. 150,000 that you may be already availing as tax rebate under Section 80C of the Income Tax Act 1961.

Therefore, if you do not want to avail/ or have already availed the IT benefits under Section 80CCD, then increasing the contribution in mutual funds make more sense.

However, to know more about NPS, do read the following –

https://www.advisorkhoj.com/articles/National-Pension-Scheme-(NPS)/National-Pension-Scheme-can-be-an-aid-for-your-Retirement-Planning

https://www.advisorkhoj.com/articles/National-Pension-Scheme-(NPS)/11-Ways-to-Make-the-Financial-Year-Count

https://www.advisorkhoj.com/post-your-queries/Tax-Rebate-on-National-Pension-Scheme

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