What is the difference between NPS and Mutual Fund SIP?

NPS is a government-backed pension scheme with tax benefits but limited withdrawal until age 60. Mutual Fund SIP offers more flexibility, liquidity, and no withdrawal restrictions, but different tax treatment.

Which is better for retirement: NPS or Mutual Fund?

It depends on your goals. NPS offers additional tax benefits under 80CCD(1B) and disciplined retirement savings. Mutual Funds offer better liquidity and flexibility. Many investors use both as part of a diversified retirement strategy.

Does this calculator include taxes?

Yes. The calculator applies 10% LTCG tax above ₹1 lakh for mutual funds and NPS annuity income is shown separately. However, individual tax situations vary, so consult a tax advisor.

NPS vs MF SIP Returns

Compare your retirement outcome from NPS contributions versus investing the equivalent post-tax amount in a Mutual Fund SIP.

Monthly NPS Investment INR

Current Age Years

Retirement age assumed: 60. Years to retirement = 60 − current age.

Years to Retirement Auto

NPS Expected Return (CAGR) %

Mutual Fund Expected Return (CAGR) %

Summary

              Winner (Post-Tax Corpus)
              —
            

Difference ₹ 0

Estimated Monthly Pension (NPS annuity) ₹ 0

Retirement Age 60

Years to Retirement 0

Monthly NPS Investment ₹ 0

MF SIP Amount (Auto 70%) ₹ 0

Assumptions: NPS 60% lump sum + 40% annuity at 6% p.a. MF SIP = 70% of NPS SIP. MF tax = 10% on gains (simplified).

Detailed Comparison

NPS

Total Invested₹ 0

Corpus at 60₹ 0

Lump Sum (60%)₹ 0

Annuity (40%)₹ 0

Est. Monthly Pension (6%)₹ 0

Mutual Fund SIP

Total Invested₹ 0

Corpus at 60₹ 0

Tax on Gains (10%)₹ 0

Post-Tax Final Corpus₹ 0

This is an educational comparison. Real-world NPS exit rules, annuity rates, and mutual fund taxation depend on regulations, fund type, holding period, and your tax slab.

What This NPS vs MF SIP Calculator Does

Compare two retirement paths: investing via NPS versus investing via a Mutual Fund SIP. This tool estimates corpus at age 60, NPS lump sum and annuity split, MF post-tax corpus, and a monthly pension estimate from NPS annuity.

Final Note and Disclaimer

This calculator is for planning and education only. Returns are assumptions and not guaranteed. MF taxation and NPS rules are simplified and may vary by regulation, product, and your personal tax situation. Consider consulting a qualified financial advisor for retirement planning.