Which is better for me - NPS or VPF? (Please read the full question below)

Question

Hi all,

I have been investing approx 11000 for the last 18 years in VPF(Voluntary PF for employees) which has given 8% approx return and the corpus is now approx 63 lacs. I was getting a deduction benefit u/s 80c till now which is not applicable now under new tax regime. I dont invest anything currently in NPS.

Should I switch my monthly investment of Rs10,000 in NPS and start from scratch or continue in VPF as it will have compounding effect ? Which one will give me a higher return?

Sreekanth Reddy · Answer

Hi,

Provident Fund is a fixed income product, hence we should not compare the PF returns with NPS returns.

The returns on NPS investments are not fixed and guaranteed.

Do you invest in mutual fund schemes?