HDFC Life7 min ago
Investing Rs 11,000 monthly? Here's whether mutual fund or NPS gives higher returns in 25 year
- Written by Shriti Aniraj
Published: Zee Business| Updated: Zee Business
If you're considering a monthly investment of Rs 11,000, it's essential to choose the right instrument to meet your long-term financial goals. Two popular options are the National Pension System (NPS) and Mutual Funds, each with unique benefits and return potential. While NPS focuses on retirement security with tax advantages and annuity income, mutual funds offer liquidity and market-driven growth. In this comparison, we break down returns, features, and suitability to help you decide which option fits your 25
-year investment plan.
(Disclaimer: Don't consider this as an investment advice. Do your own due diligence or consult an expert for financial planning)
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What is NPS – National Pension System?
1/9The National Pension System (NPS) is a government-backed retirement scheme that allows Indian citizens to build a pension corpus through regular investments. Subscribers can partially withdraw at maturity and must invest in an annuity plan for regular pension payouts.
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Who can invest in NPS?
2/9Anyone between 18 to 70 years, resident or non-resident Indian, can open an NPS All Citizen Model account by complying with basic KYC norms. This makes it an inclusive option for long-term financial planning.
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Key Features of NPS
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Low cost investment with minimal fund management fees
Simple to start, via any Point of Presence (POP)
Flexible investment options and pension fund selection
Portable across jobs and cities, making it ideal for mobile professionals
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NPS returns on Rs 11,000 monthly investment
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Active Choice- non-govenment
75% equity. 25% government bonds
Investment For 25 years
Total contribution- Rs 33 lakh
Total corpus- Rs 2,08,46,326
12.67% return (Interest Rate)
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Mutual Fund returns on Rs 11,000 monthly investment
5/9Invested amount: Rs 11,000 Estimated Returns: Rs 1,76,001 Total Value: Rs 1,87,001
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What is a Mutual Fund?
6/9A mutual fund pools money from investors and invests in stocks, bonds, or other securities. Managed by professional fund managers, it allows small investors to benefit from diversification and market exposure.
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Why choose Mutual Funds?
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Professional fund management
Diversification to reduce risk
Low entry barrier
High liquidity, allowing easy withdrawal on business days
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How Mutual Funds generate wealth
8/9Investors earn through:
Dividend payouts Capital gains NAV appreciationReinvestment options are available for compounding benefits.
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