NPS vs mutual funds: The better choice to set up your retirement corpus

You cannot exit before age 60 but that is not necessarily a disadvantage

The National Pension System (NPS) and mutual funds are similar somewhat: Both are market-linked products managed by professionals.

Which is a better vehicle to accumulate your retirement corpus: NPS or mutual funds?

With NPS, you can split your money across equity funds (E), government bonds (G) and corporate bonds (C). There is asset class A, too, where you get exposure to alternative assets like REITs, INVITs and AIFs.

You can select ‘active choice’, where you decide the allocation to various asset classes or funds (E, C, G, A). Maximum equity allocation can be 75 per cent and that