I need your suggestion on superannuation. Should I opt for or not?
I fall in 30% tax bracket. I already have my own home. There is no home loan, I repaid it completely already.
I am already contributing to NPS 50k per year.
I already have 50k per month SIP in MFs.
Now after my promotion employer has asked me if I want to opt for OR out of superannuation. Superannuation gives me fixed 8.3% round about returns + 1.5 Lakhs tax benefits each year other than 80c.
In comparison, if I get that 1.5 Lakhs in-hand then max return I will get is 12 to 13% from MF SIP. With this comparison which will give better returns?
If you have some statistics to support the answer will be really great. Thanks for reverting back soon as I want to revert to my employer for giving superannuation option in 2 hours time.
– I don’t have home loan – but I am also not planning to buy second home for investment or bigger home for myself. This is because my home is sufficient for me as of now and buying home for investment is not that helpful as we need to show rental income again. And there is no liquidity.
With all these Superannuation saving my 33% tax plus fixed return. After lot of analysis I don’t think any other option will beat these returns.
Thanks in advance for your time and reverting back
Do you think investing in any product just for the sake of tax saving is BEST idea? What about the tax liability when you retire or when you receive the money from this product? Everybody including your employer only talks about benefits while investing. But what about taxation at retirement?
Also, how safe it is to invest in such illiquid product?
Think and decide.