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Sir I have to invest money in matual fund but for only 5years so please suggest me whom I go for opt matual fund so that it will give me good return.....
Absolutely misleading. Consistently we will never get 12% or, 15 % rate of interest. Now a days 6 % is also difficult. So this is rubbish to think ELSS brings you fortune. Many time your principal amount itself gets eroded. Depending on liquid fund after retirement is highly risky. See what happened in Franklin Templeton Debt funds. Principal (investment amount) itself become zero. So do not believe this at all. Secondly Annuities are with gurantee and for lifelong . Hence peaceful. How you are misleading by saying NPS Returns are at 8% whereas ELSS gives 12% or, 15 % Returns. At least you should take same rate of return. Many times actually some ELSS can give less return than NPS. Actually it is safer to calculate at 6% only. Liquid funds Returns are fluctuating. May be at times it can give 4% also. Just slightly more than Savings bank interest. For direct investment one should be knowledgeable. Many unscrupulous advisors only mess up the things. People should be grateful.
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
Completely agree, for retirement I would advice to go with aggressive nps if less than 30 and move to low risk with age or when you feel market is not good
@@RealThingX0 start reading and learning on Cooperate Bonds, Govt Bonds and investment some part of savings in bonds of good stable company you may get 8.5% to 11% return to your account directly on monthly, yearly, commutative as you choose while investing. NPS is good if compared to ELSS.
If a Person who is able to complete 1.5 lakh of investment u/s 80c without considering NPS. And he is taking additional benefit of 80CCD for additional Rs.50k then NPS is equally good option in terms of returns. See below calculation taking reference from ur illustration. You hv considered Rs.3000 monthly contribution towads NPS. As a result you will save Tax of 30% on Rs.3000. Therefore Tax saving comes to Rs.900 and if u invest the same in any MF scheme @ 12% return for 35 years of investment. You will end up generating wealth of Rs.50 lakh. If you hv noticed in your illustration you mentioned ELSS is generation Rs.60 lakh more returns. Now the gap is reduced by Rs.50 lakh and will come to ONLY Rs.10 lakh. Plus NPS has other benefits of diversification and reducing risk across Equity and Debt
Same thing came to my mind also. And, one more thing I want to add into it that not only we can save tax @30% on invested amount i.e 4,166.67×30%×12 = Rs 15,000 of tax saved Rs 50,000 deduction u/s 80ccd(1b). Plus, your tax slab can also be reduced because of nps and this will have impact on all over your income you pay on tax as per slabs for so many years and you can invest this amount in equity or mutual funds also to generate higher return in future.
You are right. But hardly anyone is that disciplined enough to invest the taxes saved in MF. (Don't get me wrong, I'm not saying they won't invest in MF, im just saying they are more likely to forget about the tax saved and may not invest 900 additionally in MF) That said, i do understand that hardly anyone will be disciplined enough to follow the ELSS route too, because one will always have the option to withdraw (which can be tempting). Also, NPS is more secured and there's no denying there. There are a lot of assumptions in both of our approaches. I just want people to start thinking in these lines and become more aware, like you
@@LabourLawAdvisor For a person who has utilised complete limit of 80c and is getting opportunity to invest in both 80 ccd (1a) & 80 ccd (1b) investing in NPS makes much more lucrative. What's your opinion on that..? Have you made any comparative video on Superannuation Vs NPS...? And what if to do both if person is under 7.5 lac annual capping (Employer EPF + Employer NPS @ 10% of basic + Superannuation @ 15% of basic). Would like to watch it. Thanks
Rightly explained. In addition to this, if someone's employer is eligible for 80ccd2..than individual will get additional tax benefit ....NPS is good for investing under 80CCD2 and 80CCD1B
Thanks Mandeep. Really enjoy your videos. I think one thing you missed while calculating the overall corpus at the age of 60 for NPS is the additional tax saving component for NPS over 1.5L 80C. I invest in NPS just for that sole purpose. So if I am investing 50K annually (which is the max exemption) in NPS, it saves me 30% tax (depending on the tax bracket). If I invest that 15K tax saving in mutual funds, then at a 12% rate I will have an additional lumpsum of around 50-60L at the age of 60. This will help us compare NPS to ELSS more realistically in terms of the lumpsum amount at 60.
In fact the companies (not all) offering "Corporate NPS", i.e. 80CCD (2) to it's employees, the tax exposure would be further reduced depending on the tax slab. It is worth mentioning here that there is absolutely "no cap" on the amount that can be invested monthly provided it's falling under maximum 10% of basic salary requirement. I think investing in both Corporate NPS, 80CCD (2) and additional 50K, 80CCD (1B) would be a wise choice to reduce the tax exposure significantly in the course of building retirement corpus.
@mandeep Please include this also in the calculation as 30% tax saving on additional 50k in a long run or investing remaining 35k somewhere else after paying 30% as (15k) tax.
Nice example, but this will help to those folks who understand , investing the savings. But the above video is a simple exercise. this should help people to invest in both NPS and ELSS. Diversification and long term.
I think his video is one sided to ELSS as it's a paid video by Groww, hence he increased the Interest rate in ELSS multiple times, it's nowhere mentioned that in NPS i will only get 10 percent only.
@@Sabbanwar bro, if we contribute self, along with additional benefit of 50k exemption can we also get exemption under 80C if we contribute over n above 50k??
मेरा एक सवाल। बुढ़ापे के समय मे पूरी जिंदगी की गाढ़ी कमाई इक्विटी के वोलेटिलिटी के रिस्क में डालना कितना सही है? वीडियो में इक्विटी इन्वेस्टमेंट में मार्किट रिस्क रिलेटेड डिस्क्लेमर नही है। जबकि nps में एक certain उम्र के बाद पैसा इक्विटी से डेब्ट इंस्ट्रूमेंट्स में डाल दिया जाता है, जो कि रिस्क को कम करता है। ऐसा वीडियो लोगो को गुमराह करता है। कोई आपकी बात मान के बुढ़ापे के सहारे को रिस्क में डाल सकता है। इस बात पर सोचिए।
Not only this, Difference in return between NPS & EPF is less than 1 %. As NPS gave returns upto 9% and EPF is giving 8.5 as of now. Only positive assumptions are taken into account for NPS. Despite the hard fact that NPS is a market linked pension corpus fund without any sovereign guarantee... The bizarre is that, it has been bluntly suggested to invest in equity in equal percentage of the current age of the member, despite knowing that at the age of 59, 59% in equity is highly risky
Higher annuity by ELSS is based on assumption that it will give 2 percent extra return than NPS. What if both give same return of 10 percent, keeping low expense ratio of NPS in mind. Viewers please compare it also.
Of course, couldn't agree more. I tried keeping the numbers realistic. 12-14% from ELSS is what's expected. And yes, there's no denying that ELSS carry higher risk than NPS, which is why it was necessary to mention the last part about how to properly disversify between equity and debt based on the age
@@LabourLawAdvisor Please cover the same considering 50,000 extra tax deduction . If someone is in 30% Tax Bracket he/she will end up paying only Rs 2100 as he will save on Rs 900. So Keep the investment as Rs 2100 only for NPS. Also deduct 30% on the total net Amount you get in ELSS then have a fair comparison .
@Aman singh 1. we can try for higher return in Nps by having max equity exposure allowed. That means the returns of Nps and Elss wont have much difference. 2.Also the expense ratio in nps is lesser. 3. 16k tax is saved by Nps if 30% tax slab. So we have to consider the investment of that 16k for those many years.
I have watched this video twice.. and came to conclusion. NPS : 50,000/- ELSS/EPF/PPF .. : 1,50,000/- Diversified MF : 50 - 60 % Emergency Funds : 2-5 Lakhs/- (depending on req.) Health Insurance : 20,000/- Life Insurance : 10,000/- Stocks and Experimental : 5% and Live Some Life for yourself.
Hello sir, i am aditya rai and was thinking to do some investment on my mother's name for her future. Can you suggest me that should i open her NPS account or invest in ELSS for her. My income is less than 2.5 L. I hope you have understood what i am trying to say. I will be pleased if you reply me.
@@a.yashwanth Congratulations...Bhai m 36 , started working since 21, but I wasted 13 yrs of my life by not saving my hard earn money...May god bless you so that you will at better stage once you reach my age..👍
Nice analysis, one suggestion though, you should increase the contribution in NPS by 30% of 3000 per month taking into account the tax break up to 50,000 under 80CCD(1B). Also even though ELSS is assumed to give better returns because of 100% equity, the risks and fluctuations are correspondingly higher
Same thing i was thinking...good advertisement for groww but if we see reality than NPS seems better for present tax we save. Also people can see the drop we got in market for covid..it has scared hell out of many and some lost all there savings and pull out the money left due to uncertainty We can do one things though..spend some amount in NPS and whatever tax we save we can put in ELSS so double benefits 😅
@Piyush caught super point, as he said, considering above example 3000 NPF every month + 900 (saved tax under 80CCD(1B) in ELSS/Equality Stocks) with 12 percent returns will give 11484831 + 5261168 (after tax) = 16745999 - and why NPS is just 10% where ELSS is 12 !
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
As mentioned by other viewers in the comments section , NPS provides tax rebate on employee plus employer contribution. Please do consider that in the next video or in the calculator itself.
Totally biased video... I think Groww has compensated you for this. 12% or 15% return in ELSS is totally impractical thinking, pls don’t make such videos, I have high hopes from you based on your previous videos. FYI i am investing in ELSS since 6 years.
I have two suggestion to include while comparing NPS and ELSS : 1. In case of NPS we have extra tax deduction under section 8ccd(1) so saving 30% direct on 50k every year for 35years. 2. ELSS has expense ratio of around 1% yearly . Which is not the case with NPS.
@@yatishtailor3439 1. एनपीएस के मामले में हमारे पास धारा 8सीसीडी (1) के तहत अतिरिक्त कर कटौती है, इसलिए 35 साल के लिए हर साल 50k पर सीधे 30% की बचत करें। 2. ईएलएसएस का व्यय अनुपात लगभग 1% वार्षिक है। एनपीएस में ऐसा नहीं है।
Good analysis and crisp video👍 Few suggestions: I have seen NPS giving 11-12% between 2011-21 period and has better tax features. ELSS can drop below 10 also (can go to 15%, as you mentioned). Flexibility in ELSS at the time of retirement is a big plus. I liked your analysis and point on Liquid funds instead of an annuity.
Totally misleading. As far as tax savings is concerned, ELSS comes under 80c, while NPS comes under 80ccd. That means, NPS is more tax efficient than ELSS.
भाई एक दूसरे video में आप बोल रहे थे कि जल्दी स्टार्ट ककरना एक मार्किट में हउआ बना रखा है। कुछ ख़ास फर्क नहीं पड़ता जल्दी शुरू करने से। उसमे आप बोल रहे हो कि पहले अपनी सैलरी बढ़ाने पे invest करो और बाद में sip। आप नहीं तो आपका फ्रेंड होगा lla वाला। था तो lla का ही video
NPS TIER 2 vs ELSS would be interesting in terms of projected returns, as NPS TIER 2 allows anytime widthdrawal & can be switched to have less exposure to equity when desired.
Note: sr aaj 40000 jiyada hai but after 20 years ya 30 year bad iski value kitni hogi😂? Ye bhi batawo sr ...jo aaj hai wo kal Ko nahi milta .. inflation ke hisab se kijiye
The best part about NPS is its lockin. It leads to discipline, which our parents used to have while purchasing LICs. ELSS is liquid after 3 years, thus the chances are high that the person will not have it maintained for 35 years.
But in NPS if you are investing 50000 then every year 15000 savings in tax, now if you invest extra 1250 in elss that will be around 81lakhs in 35 years Now if you invest 50k yearly in NPS i.e 4200 monthly your total corpus will be 1.6 cr tax free and 81lakhs from eles after 10% LTCG 1.6cr +.72cr =2.32 cr
Sir Age factor is important in your calculation, you have considered 35 years of maturity period in which ELSS can beat NPS even after LTCG, but for 20-24 yrs period NPS seems to be good option because in ELSS LTCG will bring down it's maturity amount, it will be less compared to NPS corpus, please correct me if I am wrong.
You can't exit NPS before 60 years of age. If you exit before that it will be considered as premature withdrawal and you will only get 20% of the total fund in your hand and remaining 80% shall be invested in annuity mandatorily.
@@arorakirti Generally people investing in NPS are aware that it's a Pension scheme therefore very few people will think to withdraw before 60yrs of age
@@gc19208 Yes, but those who will withdraw before 60 years of age will get only 20% of the total corpus. So, this option is not for them. They should either go with safer PPF & EPF or if want to take risks then MF or NPS Tire 2 A/c is already there, but then forget about tax free corpus...
@@gc19208 Yes, then NPS is not for them. Better to go with safe EPF & PPF or they may go with NPS Tire 2 A/c or MF. Can't say about ELSS. But then forget about tax free corpus. My previous reply comment having same points has been deleted. Someone don't want me to tell the reality.
Investing in NPS will give two advantages from tax saving perspective. 1. You will get additional (above 1.5 lakhs in 80C) 50k each year from tax saving perspective 2. And if your employer provides this facility for NPS deduction than you will get tax benifits of your deducted amount ( mostly 12 percentage of your basic salary) So double tax saving.
Just saw your vedio of Data Entry scam thank you for awaring us. I need an advise. Recently I've quit my job without proper resignation or prior notice period but as per the agreement if we leave the job without any prior notice then we won't get the experience letter and even my company can take a legal action against me. Can you please suggest me how can I get my experience letter and P. F. money.
I would add one point that NPS also allows active choice and three categories Equity Debt Govt security. Yiu can manage your fund actively there too. I think rather than sticking to one plan, use diversification, NPS + ELSS too because both provides deduction 80C and 80CCD respectively.
You seems to have bias in favour of ELSS vs NPS, should have also highlighted the risk associated with ELSS vs NPS. Just a suggestion, anyway great effort!
I follow all ur videos but some how this video I won't completely agree... because " Mutual fund investments are subject to market risk please......" Are you crazy 75% in equity... people go bankrupt...it is such a high risk...even in blue chip...I invest actively in stock and aware of risks associated
Thanks Mandeep, Its quite helpful... Please do make videos on good 5/10 years investment plans whereby you can withdraw money after 5 years or 10 years...matlab ke short term investments, Thanks again !!! Keep It Up...
Go for ulip if you don't have term plan, if you have term plan than go with elss. Let me know if you want to get help in buying any investment product. I am a Financal Consultatant and can help you to buy one
can we have a 1.5 Lakh deduction under 80CCD(1) from PPF & EPF and 50k only contributed to NPS as a part of 80CCD(1B) combined to be treated as a total 2Lakhs deduction?
Nice explanation. I like your all videos on finance mutual fund shares. Keep it up. Which is best investment for me in ELSS or NPS. because my salary is not taxable as well as age is 45+.
You missed the elephant in the room which is 80C limit. That basically makes this analysis void. Otherwise your videos are quite informative. Thanks for all the effort.
2 points are missing out here. 1) Extra Rs 50000 tax benifit on NPS. 2) 8% & 12% are main differences here. Risk factors, more returns more risk is another factors
The percentage numbers way too unrealistic. Also, with the economy reaching its peak, near to developed economies in next 20-30 years. The rate of return will only come down. Yes, equity is the way to go for long term and I'd go with an equity based fund for retirement planning, but I'll take a much safer 9-10% return in my calculation to budget and plan better for future.
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
Great video. Would be great if you can compare between ELSS and other Mutual Funds. If someone has exhausted their 80C, which would be better ELSS or other Mutual Funds. Does the extra lock in period help the fund managers to generate better returns in case of ELSS?
What about extra tax benefits of nps us 80ccd. Plus fund mgmt charges are extra for elss. plus ambiguity on tax slab 35 years down the line on elss profit
NPS is Aggressive Hybrid (75:25) till age 50, then Balanced Hybrid (50:50) after age 50 which is a rational Asset Allocation. No investor can keep 100% into ELSS Equity right till retirement day. He has to maintain a proper Asset allocation. Hence 12% from ELSS is too enthusiastic.
Reality check : Question : Tell one fund in India which has given a cagr of 12 percent in last 35 years? Answer : None Please stop showing inflated returns because it can have negative impact on a viewer who may take a wrong decision after being influenced by your inflated numbers.
And how many funds have been there in india for 35 year. Since India is a underdeveloped economy obviously the equity and debts markets are underdeveloped/developing. So there is nothing to compare to. Do you know that return in nps is also not fixed.
For upto 5000 / month pension , Atal pension Yojana is the answer, monthly contribution will be acc to age you are right now, Else if you need more pension open NPS acc and increase your monthly contribution by 10% every year.
@@LabourLawAdvisor you are assuming return 12% from ELSS but from NPS you said 10%.Are you a joker because All ELSS having expense ratio more than 0.5% and in NPS it is 0.01% You are more stupid than rahul gandhi if you still say 10% of NPS and extra 50000 tax savings is still not calculated.
@@RahulYadav-mm2ho If you don't have complete knowledge on expense ratios of mutual funds, don't start bullshitting everywhere. If you have genuine query, then ask. Typical Indian mindset of bullshitting that everyone is thief/fake/liar etc. without providing any proof. The daily NAVs which are published are INCLUSIVE of expense ratio. So you don't have to subtract 0.5-1% fees from annualized returns. Annualized returns are calculated on change in NAV and since everyday NAV values are after deducting everyday expense ratio, no extra calculation is needed. Only thing to care about is using direct mutual funds.
Actually it's still a good product if you have exhausted the 1,50,000/- under 80C and fall under 20% or 30% tax slab. If it's just 5% then we can just pay tax and relax
I will still say go with nps only.. he manipulated all the data. And do not talk about 80ccd and lot of other human behavior stuff.. this video is sponsored. Save yourself
Good narration but, I mean BUT couple of points - 1. Investment in NPS (when chosen via corporate or government) is over and above 80C exemption whereas ELSS is only expempt within 80C. So if I am already having investments taking care of my 80C, ELSS is NOT lucarative. Infact, then it is not even an option. 2. Basis the above, assumption is that throught my lifetime, I will be able to take exemption under 80C 3. For returns, Its again based on Assumption. The assumption of NPS on an average giving 10% and ELSS giving 12%. Higher returns come along with higher volatility. And when it comes to near retirement age, having great money in Equity is NOT a wise option😎
While comparison don't depend on web calculator. NPS and ELSS both are market linked. So 12 % with ELSS and 10 % of NPS would be same as we have 75 % allocation in equity and rest in debt. Also do consider 50k / year for NPS and 35 K / year for ELSS and 15 K would be taxed / year. If you do so . In ELSS we would be having 37 Lac after 22 year. While in NPS Corpus would be 58.5 Lac ( 35 Lac without tax can be withdrawn and rest would be used as annuity.
Also if the company one works for provides NPS deduction...then an employee can contribute upto 10% of their basic salary which is eligible for tax rebate...unlike a cap in ELSS. So the above working is only theoretical ...NPS is much better as tax rebate during contribution is much higher.
This is a hypothetical comparison; if you understand the difference between high risk and low-risk financial instruments. Basically, you cannot compare money from the Demat account with the saving account.
Hypothetical comparison with hypothetical positive assumptions only. Not a single risk assessment has been done here. Bluntly suggested to invest in equity more despite knowing it's volatility.
You forgot to include addition tax savings of 15k/10k annually if a person falls under 30%/20% tax slab, considering 50k/year as per 80ccd1b. Also there is a provision to make 10% of your basic salary taxfree by asking your employer to contribute towards NPS.
Hello Mandeep, I am investing in NPS apart from my employer's contribution (whenever market is crashed by 300 to 500 points). In my app, I am seeing the ROI as 16% and max 20% till now... is it a good way to proceed?
I still prefer NPS because in long run investment NPS is much safer as government maintains through very stringent rules,ELSS FUND Managers may change loose life and rules are not same as NPS. In paper it's look's rosy but in reality if it is retirement plan don't do anything except NPS .. I am personally investing in all but still my bet is with NPS .. and this i have learned from 18 years of investment... just to promote grow app slightly mandip you have slightly taken side of ELS ..
It's sad to know that a wise man with 18 years of experience thinks that we only make videos to promote apps. I respect your opinion on NPS, but you judged too hard by saying that we had to promote an app and that why we made a video. Sorry if it hurt you, just stating my opinion as you stated yours Peace
@@LabourLawAdvisor thats ok . You have all rights to justify and unbiased, You people are doing great work ,i watch every video of yours. I follow very few great channel and you are one of that but this I felt as it was little wrong suggestion for sending investors to elss if for retirement..retirement is always a long time and we need safety and plan and return...i felt your view was mostly concentrated on returns and people may lose out something suddenly...so i felt i should highlight as honest confession...and you mentioned grow app particularly.
NPS will not give hedge from inflation…..aaj annuity 6% hogi par 20 saal baad😂 aur kam ho jayegi😂😂 annuity 3rd class plans hain. 50000 additional tax benefit ke liye ek kahawat hai “ penny wise pound foolish” 😂😂😂😂 NPS never invests in small cap , 30 saal ke liye to mai saara paisa small cap me daal du… aur 18% ka return nikaalu…. Aur NPS ke mukable double paisa banau…😅😅😅
Good explanation but you missed the 30% tax savings for NPS if you invest 50k annually and if that 15k will invest again for multiple years ..I am sure your calculation will end with some other conclusion.
30-35 years is a long horizon. It is not wise to invest in elss or equity related schemes for such a long duration. You never know, there may be a financial crisis, war, natural calamities etc. Markets may crash. NPS , PPF, Government bonds are always safe to invest in.
Bro comparison is not right.. im having government NPS scheme for last 5yrs...and my XIRR is 14.60% return..not 10% .. if you are 25yrs old choose aggressive mode in government NPS..it will beat ELSS
Hi bro, all your videos are very helpful. I am from Kerala. I understand hindi, but many of my friends dont. I kindly request you to add English subtitles to all your videos so it can be understood by non-Hindi speaking people too. Also you will get more views and subscribers.
NPS is for retirement. You just can’t withdraw your pension money. Most of us don’t have the the discipline to contribute and remain invested for long term and ultimately loosing money. So, you can’t compare NPS and ELSS. You can use ELSS in place for PPF
Not agree... 1) The expense ratio of ELSS is high as compared with NPS. 2) NPS is dedicated pension product and shall not be compared with ELSS, as due to flexibility of withdrawal after 3 years there is chance of 100% withdrawal from ELSS, causing severe crisis for retirement planning. 3) The return of NPS is assumed as 10% whereas for ELSS it is assumed as 12%. Both are assumption, hence there seems more hypothetical returns for ELSS. 4) Return in NPS may be less as compated with ELSS as it is compelte pension product, and risk is adjuated with the investors profile. Hence NPS is comparatively more robust in managing the bad phase of market cycle 5) The comparison seems to be mango and orange. Both are good for specific season. In a nutshell, in my opinion, this is not a good comparison...
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Nice
Sir NPS 2 account open kar sakte he kya 1person ka.
7717754433
7717754433
Sir I have to invest money in matual fund but for only 5years so please suggest me whom I go for opt matual fund so that it will give me good return.....
Absolutely misleading. Consistently we will never get 12% or, 15 % rate of interest. Now a days 6 % is also difficult. So this is rubbish to think ELSS brings you fortune. Many time your principal amount itself gets eroded. Depending on liquid fund after retirement is highly risky. See what happened in Franklin Templeton Debt funds. Principal (investment amount) itself become zero. So do not believe this at all. Secondly Annuities are with gurantee and for lifelong . Hence peaceful. How you are misleading by saying NPS Returns are at 8% whereas ELSS gives 12% or, 15 % Returns. At least you should take same rate of return. Many times actually some ELSS can give less return than NPS. Actually it is safer to calculate at 6% only. Liquid funds Returns are fluctuating. May be at times it can give 4% also. Just slightly more than Savings bank interest. For direct investment one should be knowledgeable.
Many unscrupulous advisors only mess up the things. People should be grateful.
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
Completely agree, for retirement I would advice to go with aggressive nps if less than 30 and move to low risk with age or when you feel market is not good
@@RealThingX0 open nps account and get yourself as nominee while selecting annuity you can take the option of pension and nominee
These all youtuber are promoting company by which they can earn Butter for their bread. Misleading Krna inka kaam ho gya h aajkal
@@RealThingX0 start reading and learning on Cooperate Bonds, Govt Bonds and investment some part of savings in bonds of good stable company you may get 8.5% to 11% return to your account directly on monthly, yearly, commutative as you choose while investing. NPS is good if compared to ELSS.
U didnt cover tax savings of nps 80 CCD of 50000 deduction
Title of this video should be "Compounding effect of 2% returns over 35 years" You have merely proved that 12% is higher than 10% 🤔
Correct, no logic of taking 12% in elss and 10% in nps
Add to that 80CCD totally ignored which makes Nps income already grown by 30% more than ELSS
Correct 😀
But, in NPS you also get additional tax exemption of Rs 50000, which may also be factored to calculate returns
Exactly
Yes this basic and most important fact is missed by this EXPERT
Bhai mai 1.5 lac ElSs mai rebate 80C
And 50000 NPS me dal ke 80 D ki rebate milegi. Alaga se kya???
@@Singh-jp7zp main 2 sal se le raha hu.
@@Singh-jp7zp Haan
If a Person who is able to complete 1.5 lakh of investment u/s 80c without considering NPS. And he is taking additional benefit of 80CCD for additional Rs.50k then NPS is equally good option in terms of returns.
See below calculation taking reference from ur illustration.
You hv considered Rs.3000 monthly contribution towads NPS. As a result you will save Tax of 30% on Rs.3000.
Therefore Tax saving comes to Rs.900 and if u invest the same in any MF scheme @ 12% return for 35 years of investment. You will end up generating wealth of Rs.50 lakh.
If you hv noticed in your illustration you mentioned ELSS is generation Rs.60 lakh more returns. Now the gap is reduced by Rs.50 lakh and will come to ONLY Rs.10 lakh.
Plus NPS has other benefits of diversification and reducing risk across Equity and Debt
Same thing came to my mind also.
And, one more thing I want to add into it that not only we can save tax @30% on invested amount i.e 4,166.67×30%×12 = Rs 15,000 of tax saved Rs 50,000 deduction u/s 80ccd(1b). Plus, your tax slab can also be reduced because of nps and this will have impact on all over your income you pay on tax as per slabs for so many years and you can invest this amount in equity or mutual funds also to generate higher return in future.
You are right.
But hardly anyone is that disciplined enough to invest the taxes saved in MF. (Don't get me wrong, I'm not saying they won't invest in MF, im just saying they are more likely to forget about the tax saved and may not invest 900 additionally in MF)
That said, i do understand that hardly anyone will be disciplined enough to follow the ELSS route too, because one will always have the option to withdraw (which can be tempting). Also, NPS is more secured and there's no denying there.
There are a lot of assumptions in both of our approaches.
I just want people to start thinking in these lines and become more aware, like you
@@LabourLawAdvisor
For a person who has utilised complete limit of 80c and is getting opportunity to invest in both 80 ccd (1a) & 80 ccd (1b) investing in NPS makes much more lucrative. What's your opinion on that..?
Have you made any comparative video on Superannuation Vs NPS...? And what if to do both if person is under 7.5 lac annual capping (Employer EPF + Employer NPS @ 10% of basic + Superannuation @ 15% of basic).
Would like to watch it. Thanks
Whao! Mind blown @anand mehta
Rightly explained. In addition to this, if someone's employer is eligible for 80ccd2..than individual will get additional tax benefit ....NPS is good for investing under 80CCD2 and 80CCD1B
Bhai elss ka return 20% lelo aur paise ban jaenge.you also missed 50000 adition yearly tax benifit in nps.
Not just 80CCD1B but for corporate NPS there is extra tax savings...
Yeah what do u think if we add 50 k extra
Zruri nahi h 20 percentage milega.
Thanks Mandeep. Really enjoy your videos.
I think one thing you missed while calculating the overall corpus at the age of 60 for NPS is the additional tax saving component for NPS over 1.5L 80C. I invest in NPS just for that sole purpose. So if I am investing 50K annually (which is the max exemption) in NPS, it saves me 30% tax (depending on the tax bracket). If I invest that 15K tax saving in mutual funds, then at a 12% rate I will have an additional lumpsum of around 50-60L at the age of 60. This will help us compare NPS to ELSS more realistically in terms of the lumpsum amount at 60.
In fact the companies (not all) offering "Corporate NPS", i.e. 80CCD (2) to it's employees, the tax exposure would be further reduced depending on the tax slab. It is worth mentioning here that there is absolutely "no cap" on the amount that can be invested monthly provided it's falling under maximum 10% of basic salary requirement.
I think investing in both Corporate NPS, 80CCD (2) and additional 50K, 80CCD (1B) would be a wise choice to reduce the tax exposure significantly in the course of building retirement corpus.
@mandeep Please include this also in the calculation as 30% tax saving on additional 50k in a long run or investing remaining 35k somewhere else after paying 30% as (15k) tax.
Nice example, but this will help to those folks who understand , investing the savings. But the above video is a simple exercise. this should help people to invest in both NPS and ELSS. Diversification and long term.
I think his video is one sided to ELSS as it's a paid video by Groww, hence he increased the Interest rate in ELSS multiple times, it's nowhere mentioned that in NPS i will only get 10 percent only.
@@Sabbanwar bro, if we contribute self, along with additional benefit of 50k exemption can we also get exemption under 80C if we contribute over n above 50k??
मेरा एक सवाल। बुढ़ापे के समय मे पूरी जिंदगी की गाढ़ी कमाई इक्विटी के वोलेटिलिटी के रिस्क में डालना कितना सही है? वीडियो में इक्विटी इन्वेस्टमेंट में मार्किट रिस्क रिलेटेड डिस्क्लेमर नही है। जबकि nps में एक certain उम्र के बाद पैसा इक्विटी से डेब्ट इंस्ट्रूमेंट्स में डाल दिया जाता है, जो कि रिस्क को कम करता है। ऐसा वीडियो लोगो को गुमराह करता है। कोई आपकी बात मान के बुढ़ापे के सहारे को रिस्क में डाल सकता है। इस बात पर सोचिए।
Not only this, Difference in return between NPS & EPF is less than 1 %. As NPS gave returns upto 9% and EPF is giving 8.5 as of now.
Only positive assumptions are taken into account for NPS. Despite the hard fact that NPS is a market linked pension corpus fund without any sovereign guarantee...
The bizarre is that, it has been bluntly suggested to invest in equity in equal percentage of the current age of the member, despite knowing that at the age of 59, 59% in equity is highly risky
Higher annuity by ELSS is based on assumption that it will give 2 percent extra return than NPS. What if both give same return of 10 percent, keeping low expense ratio of NPS in mind. Viewers please compare it also.
Of course, couldn't agree more. I tried keeping the numbers realistic. 12-14% from ELSS is what's expected. And yes, there's no denying that ELSS carry higher risk than NPS, which is why it was necessary to mention the last part about how to properly disversify between equity and debt based on the age
Nps is giving an extra tax rebate to the subscriber. If u invest 50000 per annum then it will be 65000 rs effectively.
Bhai tu sahi bol raha h aaj tho ye Labour Law Advisor wala hi chuitya bna raha hai public ko.
@@LabourLawAdvisor IF I choose 70 _75% equity in NPS contribution then return will be similar with ELSS plus extra tax benefits
@@LabourLawAdvisor Please cover the same considering 50,000 extra tax deduction . If someone is in 30% Tax Bracket he/she will end up paying only Rs 2100 as he will save on Rs 900. So Keep the investment as Rs 2100 only for NPS. Also deduct 30% on the total net Amount you get in ELSS then have a fair comparison .
This video is misguided us.
@Aman singh because you can't get 15% consistent returns year after year for decades. 😂
+ NPS is safe due to bond and govt security
+ NPS will give 50k extra tax savings
Btana kuch ata nahi, kami nikalnr aa jate ho
Exactly. Nps is purely safe.
@Aman singh 1. we can try for higher return in Nps by having max equity exposure allowed. That means the returns of Nps and Elss wont have much difference. 2.Also the expense ratio in nps is lesser. 3. 16k tax is saved by Nps if 30% tax slab. So we have to consider the investment of that 16k for those many years.
Hahaha, you're so obsessed with your age. 25 saal :D
Couldn't agree more 😂
True 😂
Ready for shadi 🤣
Unable to understand why u have considered 12% in elss and 10% in NPS... Both are market dependent and will provide same returns na???
Because in nps, as your age increase the weightage of debt investment increase and equity decrease. So returns will be less than elss.
I have watched this video twice.. and came to conclusion.
NPS : 50,000/-
ELSS/EPF/PPF .. : 1,50,000/-
Diversified MF : 50 - 60 %
Emergency Funds : 2-5 Lakhs/- (depending on req.)
Health Insurance : 20,000/-
Life Insurance : 10,000/-
Stocks and Experimental : 5%
and Live Some Life for yourself.
Seems like a nice saving/investment strategy for an Individual.
Hello sir, i am aditya rai and was thinking to do some investment on my mother's name for her future. Can you suggest me that should i open her NPS account or invest in ELSS for her. My income is less than 2.5 L. I hope you have understood what i am trying to say. I will be pleased if you reply me.
You are 25 years old.. I see you are so proud of that.. Observed in many videos
Lol .well spotted..now i wonder that he is... 😅
Iska retirement 45 pr he hone wala hai. Paaaa
Extremely good idea, even i am 38 but not though about investment and now feeling sorry for that.
Me too 😕😕😕😕😕
I am 27 year
Jab jago tabhi savera. Bas start karne ka deri h.
@@a.yashwanth Congratulations...Bhai m 36 , started working since 21, but I wasted 13 yrs of my life by not saving my hard earn money...May god bless you so that you will at better stage once you reach my age..👍
@@a.yashwanth which job it is? Directly paying 60k at 20years of age...
Nice analysis, one suggestion though, you should increase the contribution in NPS by 30% of 3000 per month taking into account the tax break up to 50,000 under 80CCD(1B). Also even though ELSS is assumed to give better returns because of 100% equity, the risks and fluctuations are correspondingly higher
right.....this will give you more accurate
Same thing i was thinking...good advertisement for groww but if we see reality than NPS seems better for present tax we save.
Also people can see the drop we got in market for covid..it has scared hell out of many and some lost all there savings and pull out the money left due to uncertainty
We can do one things though..spend some amount in NPS and whatever tax we save we can put in ELSS so double benefits 😅
In NPS now one can invest 75% of the amount in equity which will be equivalent to ELSS returns post-tax.
Why return % is different 12 vs 10 is a huge difference , video is little biased towards ELSS
@Piyush caught super point, as he said, considering above example 3000 NPF every month + 900 (saved tax under 80CCD(1B) in ELSS/Equality Stocks) with 12 percent returns will give 11484831 + 5261168 (after tax) = 16745999 - and why NPS is just 10% where ELSS is 12 !
So much hypothecation jus for favouring elss... Sab market pe depend hai kahi nhi likha hai nps elss se kam hi return dega
Groww walo ki payment ka kamaal
NPS is such a Shameful Scheme ! i dont know why govt employees did not do a big protest !
There are three kinds of lies: lies, damned lies, and statistics.. #12%
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
For central government employee OLD PENSION SCHEME is best..
Best ELSS "Axis long term Equity fund"
I also have that fund ..is there any risks?
@@MsPratik777 no this best elss plan
Best elss. I am investing from last 5 years ans it is performing awesome.
There is no best ELSS fund. It changes every year. Yes Axis ELSS is good fund but last year Mirae Asset performed better. So do your own research.
As mentioned by other viewers in the comments section , NPS provides tax rebate on employee plus employer contribution. Please do consider that in the next video or in the calculator itself.
Section 80C
@@colgate4646no. Under section 80ccd 2 and 80ccd 1(B)
You forgot about taking into consideration of income tax benefit by investing in NPS
He told about tha
Extra 50k tax benefit in NPS investment s over 80C
@@praveenpandey669 At what time in the video?
Totally biased video... I think Groww has compensated you for this. 12% or 15% return in ELSS is totally impractical thinking, pls don’t make such videos, I have high hopes from you based on your previous videos. FYI i am investing in ELSS since 6 years.
How much interest you got in these 6 yrs?
@@amitnelson6442 close to 8-9%. Funds are ABSL tax relief 96 and IDFC Tax Advantage.
Agreed
NPS with 10% is also biased though.
This is just an example and assumptions. It's not practical.
Toh lu kya
I have two suggestion to include while comparing NPS and ELSS :
1. In case of NPS we have extra tax deduction under section 8ccd(1) so saving 30% direct on 50k every year for 35years.
2. ELSS has expense ratio of around 1% yearly . Which is not the case with NPS.
Hindi language main likhe sir
@@yatishtailor3439 1. एनपीएस के मामले में हमारे पास धारा 8सीसीडी (1) के तहत अतिरिक्त कर कटौती है, इसलिए 35 साल के लिए हर साल 50k पर सीधे 30% की बचत करें।
2. ईएलएसएस का व्यय अनुपात लगभग 1% वार्षिक है। एनपीएस में ऐसा नहीं है।
Also NPS reduce market risk with age by reducing equity components.
What is better :
1. Investing 60k in NPS in April starting or
2. Investing 5k every month in NPS?
@@keshavgupta129 2nd option is better if you’re keeping high % in equity.
Good analysis and crisp video👍
Few suggestions: I have seen NPS giving 11-12% between 2011-21 period and has better tax features. ELSS can drop below 10 also (can go to 15%, as you mentioned).
Flexibility in ELSS at the time of retirement is a big plus. I liked your analysis and point on Liquid funds instead of an annuity.
Totally misleading. As far as tax savings is concerned, ELSS comes under 80c, while NPS comes under 80ccd. That means, NPS is more tax efficient than ELSS.
yes correct
80ccd is considered after maxing out on 80C for NPS.
@animesh , add a parallel SIP of your tax savings (50000/12) and add that maturity with NPS retirement corpus , still it'll be less than ELSS corpus.
भाई एक दूसरे video में आप बोल रहे थे कि जल्दी स्टार्ट ककरना एक मार्किट में हउआ बना रखा है। कुछ ख़ास फर्क नहीं पड़ता जल्दी शुरू करने से।
उसमे आप बोल रहे हो कि पहले अपनी सैलरी बढ़ाने पे invest करो और बाद में sip।
आप नहीं तो आपका फ्रेंड होगा lla वाला। था तो lla का ही video
NPS TIER 2 vs ELSS would be interesting in terms of projected returns, as NPS TIER 2 allows anytime widthdrawal & can be switched to have less exposure to equity when desired.
Nice suggestion
I think there's no tax exemption in nps tier 2? I might be wrong.Please correct me if I'm wrong
@rohithkumar3480 yes no tax benefits on tier 2
Note: sr aaj 40000 jiyada hai but after 20 years ya 30 year bad iski value kitni hogi😂? Ye bhi batawo sr ...jo aaj hai wo kal Ko nahi milta .. inflation ke hisab se kijiye
The best part about NPS is its lockin. It leads to discipline, which our parents used to have while purchasing LICs. ELSS is liquid after 3 years, thus the chances are high that the person will not have it maintained for 35 years.
Everyone will not retire at 60 yrs most people r now working in pvt sectors nowadays so Nps is not a good option
1.5 lakh. Elsss. And 50 hzar NPS. Me. Lga ke 2. Lac. Ki. Rebate. Milegi. Kya. Sure. Shot ????
Hum mera graduation mein jitna nahi sikha finance ke bara mein wis se zada toh hum youtube se sikha hai.... Thank you LLA
But in NPS if you are investing 50000 then every year 15000 savings in tax, now if you invest extra 1250 in elss that will be around 81lakhs in 35 years
Now if you invest 50k yearly in NPS i.e 4200 monthly your total corpus will be 1.6 cr tax free and 81lakhs from eles after 10% LTCG 1.6cr +.72cr =2.32 cr
Sir Age factor is important in your calculation, you have considered 35 years of maturity period in which ELSS can beat NPS even after LTCG, but for 20-24 yrs period NPS seems to be good option because in ELSS LTCG will bring down it's maturity amount, it will be less compared to NPS corpus, please correct me if I am wrong.
You can't exit NPS before 60 years of age. If you exit before that it will be considered as premature withdrawal and you will only get 20% of the total fund in your hand and remaining 80% shall be invested in annuity mandatorily.
@@arorakirti Generally people investing in NPS are aware that it's a Pension scheme therefore very few people will think to withdraw before 60yrs of age
@@gc19208 Yes, but those who will withdraw before 60 years of age will get only 20% of the total corpus. So, this option is not for them. They should either go with safer PPF & EPF or if want to take risks then MF or NPS Tire 2 A/c is already there, but then forget about tax free corpus...
@@gc19208 Yes, then NPS is not for them. Better to go with safe EPF & PPF or they may go with NPS Tire 2 A/c or MF. Can't say about ELSS. But then forget about tax free corpus.
My previous reply comment having same points has been deleted. Someone don't want me to tell the reality.
Investing in NPS will give two advantages from tax saving perspective.
1. You will get additional (above 1.5 lakhs in 80C) 50k each year from tax saving perspective
2. And if your employer provides this facility for NPS deduction than you will get tax benifits of your deducted amount ( mostly 12 percentage of your basic salary)
So double tax saving.
Just saw your vedio of Data Entry scam thank you for awaring us. I need an advise. Recently I've quit my job without proper resignation or prior notice period but as per the agreement if we leave the job without any prior notice then we won't get the experience letter and even my company can take a legal action against me. Can you please suggest me how can I get my experience letter and P. F. money.
You missed out major component ... nps tax benift .. is diff. from elss ...
I would add one point that NPS also allows active choice and three categories Equity Debt Govt security. Yiu can manage your fund actively there too. I think rather than sticking to one plan, use diversification, NPS + ELSS too because both provides deduction 80C and 80CCD respectively.
what would be the value of these 40-50,000 per month pension after 30 years ?? Absolutely nothing
NPS IS USELESS
Only question, how did you choose 12% and 15% for ELSS ? what's the base for that ? Did you compare historical data ?
NPS is calculated @10% vs ELSS calculated @12% & @15%. IN THIS VIDEO ELSS HAS GIVEN MORE WEIGHTAGE.
You seems to have bias in favour of ELSS vs NPS, should have also highlighted the risk associated with ELSS vs NPS. Just a suggestion, anyway great effort!
wo koi nahi karega.. video ko jyada attractive aise hi banaya jata hai
Not a single risk assessment has been done here. Only positive assumptions, either for NPS of ELSS.
Meri age 38 yr hai aur NPS TIRE 1 me es saal 8.92 ka return mila hai jabki nifty es saal 27%ka return diya hai
After watching too many CarryMinati videos, when I hears chalo shuru karte hai bina kisi... (Deri ke).. my brain presumes (Bakchodi ke)😂
I follow all ur videos but some how this video I won't completely agree... because " Mutual fund investments are subject to market risk please......"
Are you crazy 75% in equity... people go bankrupt...it is such a high risk...even in blue chip...I invest actively in stock and aware of risks associated
Thanks Mandeep, Its quite helpful... Please do make videos on good 5/10 years investment plans whereby you can withdraw money after 5 years or 10 years...matlab ke short term investments, Thanks again !!! Keep It Up...
Go for ulip if you don't have term plan, if you have term plan than go with elss. Let me know if you want to get help in buying any investment product. I am a Financal Consultatant and can help you to buy one
can we have a 1.5 Lakh deduction under 80CCD(1) from PPF & EPF and 50k only contributed to NPS as a part of 80CCD(1B) combined to be treated as a total 2Lakhs deduction?
Nice explanation. I like your all videos on finance mutual fund shares. Keep it up. Which is best investment for me in ELSS or NPS. because my salary is not taxable as well as age is 45+.
॥ जय जय श्री सीताराम जी ॥ 🚩
॥ जय जय श्री हनुमान जी ॥ 🚩
॥ जय जय श्री अयोध्या जी धाम ॥🚩
Bro...you haven't considered the factor for tax savings option in present year...you will get extra benefits of 50k
You missed the elephant in the room which is 80C limit. That basically makes this analysis void. Otherwise your videos are quite informative. Thanks for all the effort.
2 points are missing out here.
1) Extra Rs 50000 tax benifit on NPS.
2) 8% & 12% are main differences here. Risk factors, more returns more risk is another factors
Please check annuity plan in Aditya Birla Sun Life insurance
The percentage numbers way too unrealistic. Also, with the economy reaching its peak, near to developed economies in next 20-30 years. The rate of return will only come down.
Yes, equity is the way to go for long term and I'd go with an equity based fund for retirement planning, but I'll take a much safer 9-10% return in my calculation to budget and plan better for future.
Absoultely. A safe bet on 9-10% is much better than a fluctuated ELSS or Equity for 30 years which depends on 100+ parameters and many are externals.
My mother is 45 year old I'm 17 father don't live with us. We are dependent on my uncle(mama) . Should we go with NPS or ELSS for my mother. My uncle as saying not to open NPS otherwise my father would also get benefit from it. What should I do sir?
@@RealThingX0 if you are coming under 30% bracket then go for it. My personal opinion.
Sir obviously if u change % return then numbers will change but...... it all comes with a big "IF"
Great video. Would be great if you can compare between ELSS and other Mutual Funds. If someone has exhausted their 80C, which would be better ELSS or other Mutual Funds. Does the extra lock in period help the fund managers to generate better returns in case of ELSS?
What about extra tax benefits of nps us 80ccd. Plus fund mgmt charges are extra for elss. plus ambiguity on tax slab 35 years down the line on elss profit
You forgot to mention the extra tax benefit on 50k in NPS
That's what I was thinking too!
yes this comparison is very good for 1.5lakh what about 50k we obviously need to invest in it. no option. wht do you want to analyse
You did not calculate the 50k tax deduction in tax when choosing nps scheme.
One of the best person on youtube👍👍
Thanks a lot 😊
Railway employees have to compulsarily opt for NPS. What can we do now?
NPS is Aggressive Hybrid (75:25) till age 50, then Balanced Hybrid (50:50) after age 50 which is a rational Asset Allocation. No investor can keep 100% into ELSS Equity right till retirement day. He has to maintain a proper Asset allocation. Hence 12% from ELSS is too enthusiastic.
Reality check :
Question : Tell one fund in India which has given a cagr of 12 percent in last 35 years?
Answer : None
Please stop showing inflated returns because it can have negative impact on a viewer who may take a wrong decision after being influenced by your inflated numbers.
And how many funds have been there in india for 35 year. Since India is a underdeveloped economy obviously the equity and debts markets are underdeveloped/developing. So there is nothing to compare to. Do you know that return in nps is also not fixed.
I agree on your second point that he should not give wrong advice. This may seriously affect his post retirement life
I am 35 years I am paying 800 per month and opted 5000 per month after 60. My question is is is possible to get more pension?
it depends upon your years of contribution and allocations into asset classes such as Equity, Debt, Bond and Alternate Investment Fund (A).
For upto 5000 / month pension , Atal pension Yojana is the answer, monthly contribution will be acc to age you are right now, Else if you need more pension open NPS acc and increase your monthly contribution by 10% every year.
FYKI my NPS XIRR is 11% and investing since last 7 yrs.
Is it in auto choice ?
@@sarthakmehta5949 my NPS was open by government as pf contribution.
You are my Avenger of investments.
Best compliment till date
Sir make a new video on nps annuity for 2024
Super Duper Information... Request for More detailed video on Liquid Fund and different category fund. Large, Mid, Multi, Small CAP.
Thanks, you should watch our playlist: smart stock tip
@@LabourLawAdvisor bro don't lie with people because you are getting paid from grow.
@@LabourLawAdvisor you are assuming return 12% from ELSS but from NPS you said 10%.Are you a joker because All ELSS having expense ratio more than 0.5% and in NPS it is 0.01% You are more stupid than rahul gandhi if you still say 10% of NPS and extra 50000 tax savings is still not calculated.
@@LabourLawAdvisor Don't lie just because you are paid from grow app
@@RahulYadav-mm2ho If you don't have complete knowledge on expense ratios of mutual funds, don't start bullshitting everywhere. If you have genuine query, then ask. Typical Indian mindset of bullshitting that everyone is thief/fake/liar etc. without providing any proof.
The daily NAVs which are published are INCLUSIVE of expense ratio. So you don't have to subtract 0.5-1% fees from annualized returns. Annualized returns are calculated on change in NAV and since everyday NAV values are after deducting everyday expense ratio, no extra calculation is needed. Only thing to care about is using direct mutual funds.
Bro what about employer extra contribution in nps
Excellent explanation just when my financial advisor was recommending NPS for tax benefits 🙄
NPS and ELSS fall under different exempt category
Actually it's still a good product if you have exhausted the 1,50,000/- under 80C and fall under 20% or 30% tax slab. If it's just 5% then we can just pay tax and relax
I will still say go with nps only.. he manipulated all the data. And do not talk about 80ccd and lot of other human behavior stuff.. this video is sponsored. Save yourself
Clear cut paid promotion by Groww.
Good narration but, I mean BUT couple of points -
1. Investment in NPS (when chosen via corporate or government) is over and above 80C exemption whereas ELSS is only expempt within 80C. So if I am already having investments taking care of my 80C, ELSS is NOT lucarative. Infact, then it is not even an option.
2. Basis the above, assumption is that throught my lifetime, I will be able to take exemption under 80C
3. For returns, Its again based on Assumption. The assumption of NPS on an average giving 10% and ELSS giving 12%. Higher returns come along with higher volatility. And when it comes to near retirement age, having great money in Equity is NOT a wise option😎
While comparison don't depend on web calculator. NPS and ELSS both are market linked. So 12 % with ELSS and 10 % of NPS would be same as we have 75 % allocation in equity and rest in debt. Also do consider 50k / year for NPS and 35 K / year for ELSS and 15 K would be taxed / year. If you do so . In ELSS we would be having 37 Lac after 22 year. While in NPS Corpus would be 58.5 Lac ( 35 Lac without tax can be withdrawn and rest would be used as annuity.
You can even invest more in Govt Securities in NPS for much more guaranteed returns. For long run it might give upto 11% return, if done wisely.
Also if the company one works for provides NPS deduction...then an employee can contribute upto 10% of their basic salary which is eligible for tax rebate...unlike a cap in ELSS. So the above working is only theoretical ...NPS is much better as tax rebate during contribution is much higher.
You will also get your entire 60% portion as tax free at the retirement.
Bro..can we do SIP in Sovereign gold bond
This is a hypothetical comparison; if you understand the difference between high risk and low-risk financial instruments.
Basically, you cannot compare money from the Demat account with the saving account.
Hypothetical comparison with hypothetical positive assumptions only. Not a single risk assessment has been done here. Bluntly suggested to invest in equity more despite knowing it's volatility.
ELSS under 80C and NPS under 80CCD (2)
I have invested in 80c. 1.5 lac
Need more tax-saving then I should go for NPS. Right?
Yes 50k is the limit for a financial year
जिसका NPS हैं वो ELSS में कैसे करे
Assumption of RoI is arbitrary and any change would throw out all the above calculations
Not even discussed about the risks involved. Predictions of ROI done only taking into account of hypothetical positive assumptions.
You forgot to include addition tax savings of 15k/10k annually if a person falls under 30%/20% tax slab, considering 50k/year as per 80ccd1b.
Also there is a provision to make 10% of your basic salary taxfree by asking your employer to contribute towards NPS.
Jab hum retire ho jayenge uus samay jo 20000 pension milega uska koi value nehi rahega.
You are right
Sounds like ELSS is better .
But how to show sip invested in ELSS at deduction ?
Just show the transaction details in ELSS, which just shows the amount invested.
Hello Mandeep, I am investing in NPS apart from my employer's contribution (whenever market is crashed by 300 to 500 points). In my app, I am seeing the ROI as 16% and max 20% till now... is it a good way to proceed?
I still prefer NPS because in long run investment NPS is much safer as government maintains through very stringent rules,ELSS FUND Managers may change loose life and rules are not same as NPS. In paper it's look's rosy but in reality if it is retirement plan don't do anything except NPS .. I am personally investing in all but still my bet is with NPS .. and this i have learned from 18 years of investment... just to promote grow app slightly mandip you have slightly taken side of ELS ..
It's sad to know that a wise man with 18 years of experience thinks that we only make videos to promote apps.
I respect your opinion on NPS, but you judged too hard by saying that we had to promote an app and that why we made a video.
Sorry if it hurt you, just stating my opinion as you stated yours
Peace
@@LabourLawAdvisor thats ok . You have all rights to justify and unbiased, You people are doing great work ,i watch every video of yours. I follow very few great channel and you are one of that but this I felt as it was little wrong suggestion for sending investors to elss if for retirement..retirement is always a long time and we need safety and plan and return...i felt your view was mostly concentrated on returns and people may lose out something suddenly...so i felt i should highlight as honest confession...and you mentioned grow app particularly.
2 cases you forgot to mention
1) 50000 extra benefit in 80c slab of income tax in nps
2) 14% of extra contributions for gov salaried person
Ye sab sponsored he..India me saving karne ka discipline koi maintain nhi karta. Crore pati na mf se banoge na guaranteed Product se.
Very nice of you
NPS will not give hedge from inflation…..aaj annuity 6% hogi par 20 saal baad😂 aur kam ho jayegi😂😂 annuity 3rd class plans hain. 50000 additional tax benefit ke liye ek kahawat hai “ penny wise pound foolish” 😂😂😂😂 NPS never invests in small cap , 30 saal ke liye to mai saara paisa small cap me daal du… aur 18% ka return nikaalu…. Aur NPS ke mukable double paisa banau…😅😅😅
Good explanation but you missed the 30% tax savings for NPS if you invest 50k annually and if that 15k will invest again for multiple years ..I am sure your calculation will end with some other conclusion.
30-35 years is a long horizon. It is not wise to invest in elss or equity related schemes for such a long duration. You never know, there may be a financial crisis, war, natural calamities etc. Markets may crash.
NPS , PPF, Government bonds are always safe to invest in.
Bro comparison is not right.. im having government NPS scheme for last 5yrs...and my XIRR is 14.60% return..not 10% .. if you are 25yrs old choose aggressive mode in government NPS..it will beat ELSS
Hi bro, all your videos are very helpful. I am from Kerala. I understand hindi, but many of my friends dont. I kindly request you to add English subtitles to all your videos so it can be understood by non-Hindi speaking people too. Also you will get more views and subscribers.
NPS is for retirement. You just can’t withdraw your pension money. Most of us don’t have the the discipline to contribute and remain invested for long term and ultimately loosing money. So, you can’t compare NPS and ELSS. You can use ELSS in place for PPF
EPF ME INVEST HAI KYA NPS ME INVESTMENT KAR SAKTE HAI ?
Ans plz
Grow ka chamcha if you invest 75% in equity in NPS then you will get 12% return and additional tax benefit under 80cc 15k which you can do sip in elss
#llbadvisors #llbshorts
Saw your videos really helpful,,,
One questions which is best? Sip or lumpsump in NPS? Please reply
Aap kitne saalo se 25 saal ke hai?
Not agree...
1) The expense ratio of ELSS is high as compared with NPS.
2) NPS is dedicated pension product and shall not be compared with ELSS, as due to flexibility of withdrawal after 3 years there is chance of 100% withdrawal from ELSS, causing severe crisis for retirement planning.
3) The return of NPS is assumed as 10% whereas for ELSS it is assumed as 12%. Both are assumption, hence there seems more hypothetical returns for ELSS.
4) Return in NPS may be less as compated with ELSS as it is compelte pension product, and risk is adjuated with the investors profile. Hence NPS is comparatively more robust in managing the bad phase of market cycle
5) The comparison seems to be mango and orange. Both are good for specific season.
In a nutshell, in my opinion, this is not a good comparison...