Investments (instaed of FD )in Tier- 2 of NPS as like mutual funds

499 views

Save Share

Join Us Follow Us Add as Source

S S Dahale

Agri and business

20 Points Posted on 14 June 2018

Many investors keep -park certain amount in FD with banks and NBFC, now a days most of the MF managers and financial advisors ( may be (?)because of commisssion they get) advise to park this amount in mutual funds,instead of FD's

my query, why not park this amount in Tier- 2 of NPS ( National Pension Scheme), which is also governed by PFRDA, and gives better returns as like mutual funds, any experts at this CA club forum , may kindly mention if any if 's and but's of investments in Tier-2 of NPS

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

28 Points Posted on 14 June 2018

NPS Tier II is not a fund registered under Section 10(23D) of the I-T Act, the equity investment will not be eligible to be as an equity-oriented fund. Consequently, it may not be eligible for long-term capital gains exemption under IT Act.

Unlike the FD, where only the interest is taxed, here the entire amount withdrawn is taxable. Also, unlike debt funds, investments in corporate debt and government plans of the NPS do not enjoy the indexation benefit. It is a big disadvantage and can bring down returns substantially. So, think carefully before considering the Tier-II NPS account as an alternative to fixed deposits and debt funds.

Otherwise, due to low cost structure it is better to other types of investments...

S S Dahale

Agri and business

20 Points Posted on 14 June 2018

At the same time, NPS tier 2 is for those conservative people , as in NPS one has to opt only 1 pension fund house, not as like MF, where there one has lot more opportunities of MF to look into,(inclding switchover) secondly NPS has max 50% exposure to equity

Your are not logged in . Please login to post replies

Click here to Login / Register

Recent Topics :

More recent discussions | Post

Menu

Investments (instaed of FD )in Tier- 2 of NPS as like mutual funds

S S Dahale

Many investors keep -park certain amount in FD with banks and NBFC, now a days most of the MF managers and financial advisors ( may be (?)because of commisssion they get) advise to park this amount in mutual funds,instead of FD's

my query, why not park this amount in Tier- 2 of NPS ( National Pension Scheme), which is also governed by PFRDA, and gives better returns as like mutual funds, any experts at this CA club forum , may kindly mention if any if 's and but's of investments in Tier-2 of NPS

Dhirajlal Rambhia

S S Dahale

At the same time, NPS tier 2 is for those conservative people , as in NPS one has to opt only 1 pension fund house, not as like MF, where there one has lot more opportunities of MF to look into,(inclding switchover) secondly NPS has max 50% exposure to equity

Leave a Reply

Recent Topics :

Related Topics :

Latest Job Openings

Internal Audit - Team Lead

SENIOR AUDITOR & ACCOUNTS MANAGER

Semi Qualified CA

CA Article Assistant

Freelance Taxation Content Writer Intern

Finance Manager

Semi Qualified CA / CA Inter - 2 Groups Cleared

Article Assistant

Menu

Forum Search

Investments (instaed of FD )in Tier- 2 of NPS as like mutual funds

Many investors keep -park certain amount in FD with banks and NBFC, now a days most of the MF managers and financial advisors ( may be (?)because of commisssion they get) advise to park this amount in mutual funds,instead of FD's

my query, why not park this amount in Tier- 2 of NPS ( National Pension Scheme), which is also governed by PFRDA, and gives better returns as like mutual funds, any experts at this CA club forum , may kindly mention if any if 's and but's of investments in Tier-2 of NPS

At the same time, NPS tier 2 is for those conservative people , as in NPS one has to opt only 1 pension fund house, not as like MF, where there one has lot more opportunities of MF to look into,(inclding switchover) secondly NPS has max 50% exposure to equity

Leave a Reply

Recent Topics :

Related Topics :