Which is the best fund to invest in NPS for a long term perspective?

Ans:

1.TECHMAHENDRA 25NOS - Hold

2.MARICO 10 NOS - Hold

3.INDRAPRASTHA GAS 10NOS - Hold

4.INFY 10NOS - Hold

5.EXIDE 25NOS - Hold

6.GRANUELS 25NOS - Hold

7.ADANI GREEN 25 NOS- Exit

8.ITC 25 NOS - Hold

9.IRCTC 5NOS - Hold

10.AVENUE MARKET 3NOS - Hold

11.VODAFONE IDEA 100NOS - Exit

12.SOUTH INDIAN BANK 200NOS - Exit

13.TATA CHEMICALS 20NOS - Hold

14.SHOBHA 25NOS - Exit

PL ADVICE YOUR VIEWS

Ans: Hi Renukadevi

Yes NPS is good for investing and tax saving both as per old regime. You can invest say 2 lacs in it and 6 lacs you must allocate to aggressive funds lime mid cap and small cap and index funds but in a systematic transfer plan method

Ans: there is no guarantee for any returns on any of the products available in the market. You cannot rely on past data for future returns. Just fix your goals and investment plan for the same. Bank FDs or corporate FDs may give you your expected returns. But if the interest rate falls, you may get lower returns in the future.

Ans: Hello Mr. Kumar Shashi Raj,

It's excellent that you're considering diversifying your investments and planning for your future. Given your income and investment goals, let's explore some options:

NPS (National Pension System):

NPS offers different investment options with varying levels of risk and potential returns.
For your objective of earning at least 8% with lower risk, you can consider investing in the "Moderate" or "Conservative" asset allocation options.
These options typically invest a higher proportion of funds in debt instruments, providing stability and lower volatility compared to equity-heavy options.
While NPS offers the potential for attractive returns over the long term, it's essential to understand that past performance is not indicative of future results.
Other options for investment with lower risk:

Debt Mutual Funds: These funds primarily invest in fixed-income securities like bonds and government securities, offering relatively stable returns with lower risk compared to equity investments.
Public Provident Fund (PPF): Since you're already investing in PPF, you can continue to maximize contributions to this tax-efficient instrument, which offers attractive returns along with tax benefits.
Bank Fixed Deposits: FDs provide a fixed rate of interest and are considered low-risk investments. However, they may offer relatively lower returns compared to other investment avenues like mutual funds or NPS.
Government Savings Schemes: Options like Senior Citizen Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS) offer fixed returns with capital protection, making them suitable for conservative investors.
When selecting investment options, consider factors like your risk tolerance, investment horizon, and financial goals. Diversifying across asset classes can help mitigate risk and optimize returns over the long term.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: There isn't a single "best" NPS account since returns are market-linked and depend on the performance of the chosen funds. However, NPS fulfills your requirements for an 80C deduction and equity-linked investment. Here's what to consider when choosing an NPS account:

Investment Strategy:

NPS offers two investment options: Auto Choice and Active Choice.
Auto Choice: A default option that automatically adjusts your asset allocation (equity, debt, etc.) based on your age.
Active Choice: Allows you to choose your asset allocation based on your risk tolerance. This lets you invest more in equity for potentially higher returns but also carries more risk.
Fund Manager Performance:

You can choose from eight Pension Fund Managers (PFMs) who manage the invested funds.
Research and compare the past performance of different PFMs in the Equity scheme (Scheme E) considering factors like expense ratio and returns.
Here are some pointers to keep in mind:

NPS has a lock-in period until retirement with limited withdrawal options. Invest with a long-term horizon in mind.
Equity investment involves market risk. Higher equity allocation can lead to potentially higher returns but also greater fluctuations.
Remember: Past performance isn't a guarantee of future results. It's recommended to consult a financial advisor for personalized advice based on your risk profile and investment goals.
Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in