If you want higher returns, and are prepared for volatility, opt for NPS

But be ready for lock-in till the age of 60, volatility, mandatory annuitisation

With interest income on provident fund contributions above Rs 2.5 lakh becoming taxable, many people are contemplating shifting the money they contributed to Voluntary Provident Fund (VPF) to the National Pension System (NPS). They should understand the pros and cons of the two products before making a decision:   

Risk and return

From April 1, the rate of return on Employees’ Provident Fund (EPF) will be 8.5 per cent on contributions till Rs 2.5 lakh. Interest on contributions above Rs 2.5 lakh will be taxed at the slab rate. For someone in the 30-per cent tax slab, the post-tax return on such