How to select fund manager in NPS

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National Pension System is one of the most sought after investment avenues for retirement. In case you would like to go for NPS Active Choice, then what should you keep in mind while selecting the ratio and the fund manager? Money9 Helpline hosted Finsafe’s founder, Mrin Agarwal to resolve all the queries related to NPS.

Edited excerpts

Vivek Goenka: I am 34 years old, I have started NPS from the last year for an 80 CCD (1b) deduction of Rs 50,000. I have chosen fund manager as HDFC, theme as active with the allocation as, 75%E, 15%g, 10%C. On retirement, we will get 60% as tax-free, 40% as annuity purchase, but Rs 15,000 which we are getting as tax rebate now, can we invest the same in equity to get a good return for retirement?

Agarwal: So investing RS 15,000 in equities is a good idea, but do it from mutual funds, don’t do it from tier II in NPS, because tier II in NPS is fully taxable. It will give the same style of management.

Arun Singh: I am investing NPS SIP Rs 4168, E-75%, G-15%, C-10%. Please review for 30 years horizon.

Agarwal: It is absolutely a good choice as you are giving 75% to equities for your time horizon.

Watch the full video to know more…