NPS gains edge over mutual funds as pension tag fades

Think of the National Pension System, or NPS, as a special piggy bank for retirement in India.

For a long time, people saw it as a boring, safe savings plan with small returns.

Now, NPS lets people put up to all of their money into stocks, just like mutual funds do.

Mutual funds are like a big toy box where people can take money out for many different goals.

NPS is meant mostly for one goal: having money when you stop working.

The government gives tax benefits to people who save through NPS, especially when their company also puts in money.

NPS also has very small fees, so almost all the money saved keeps growing.

New rules even let people take out some money before retirement for things like education or buying a first home.

After retirement, people can keep the money invested and take small amounts out regularly instead of taking it all at once.

So NPS and mutual funds can be used together, like teammates, for a comfortable retirement.