2024-09-22 05:17:23
New Delhi: The central government has launched a unified pension scheme for government employees. For those doing private jobs, the National Pension System (NPS) is one of the best options to get pension. By investing in it, you can not only collect a large fund on retirement but can also get a good pension. In the last 10 years, the NPS pension fund has given good profits to investors. Investing in it also provides relief in income tax. In the budget presented this year, tax deduction has been increased for those who choose the new tax system. Under section 80CCD (2), up to 10 percent of the basic salary deposited in NPS is tax free. Under the new tax system, it has been increased to 14 percent of the basic salary.This scheme of LIC is great for getting pension, once you invest, you will get this much money every month
1. Equity Funds
NPS equity funds have given great returns to investors. In the last one year, equity funds gave an average return of 32 percent, while Nifty rose by 27 percent. This is because the Pension Fund Regulatory and Development Authority (PFRDA) relaxed the investment norms in the year 2021. According to this, NPS equity funds can go beyond the index and invest in stocks with a market cap of at least Rs 5000 crore.
Which equity fund gave how much return?
Very beneficial in the long term
DSP Pension Fund CEO Rahul Bhagat explains that NPS funds do not face the possibility of redemption pressure. Therefore, investing in pension funds for the long term can be a profitable deal.
2. Gilt Funds
Gilt funds are also growing rapidly at this time. They were sluggish for some time. In the last one year, their returns have been in double digits. Aditya Birla Sun Life Pension Fund has been the best performing fund in the last 3-5 years. However, investors should not look at annual returns separately. Their position may improve when the interest rate cycle changes. These funds are better for investors looking for low but stable returns. Long term investors should avoid them. People who will retire in the next 2 or 3 years can invest in them.
Which gilt fund gave how much return?
There will be no relaxation in interest rates right now
Arsh Mogre, institutional equities economist at Prabhudas Lilladher, says despite the Fed likely to cut rates in September, the RBI will not start easing rates before the third quarter of 2024-25.
3. Corporate Bond Funds
If you want to invest for the long term, you can invest in corporate bond funds. However, their maturity profile is low. The average maturity of these bonds is around 5 to 6 years. The risk in them is quite low. They reduce the risk by making the portfolio less sensitive to changes in rates. This is the reason why their performance in the long term is behind that of gilt funds.
Which corporate bond fund gave how much return?
Can become a big fund
According to HDFC Pension CEO Sriram Iyer, if a return of 8.5 per cent can create a huge amount in PF in 25-30 years, then imagine what can be achieved with a return of 10 to 10.5 per cent from NPS?
4. Alternative Investments
This fourth option was introduced a few years ago. These funds invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). REITs invest in completed and under-construction real estate projects. InvITs invest in infrastructure projects such as roads, power plants, highways and warehouses. In the last one year, alternative investment funds have given double-digit returns. However, the long-term returns have not been very good.
Which alternative investment fund gave how much return?
5% limit on investment
According to Deepti Goyal, Associate Partner, Alpha Capital, the 5 per cent limit on investment in alternative investment funds has been set keeping in mind the risks of investing in this sector.