https://v2.webnotes.in/categories/retirement-planning/Recent content in Retirement Planning on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/nps-mutual-fund-overlap/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/nps-mutual-fund-overlap/<p>The <strong>National Pension System (NPS)</strong> and mutual funds are both market-linked investment vehicles regulated by government authorities, investing in equity, debt, and alternative assets. However, they differ fundamentally in their legal structure, tax treatment, liquidity, and purpose. Understanding the overlap and the differences is essential for investors allocating retirement savings across the two vehicles.</p> <h2 id="overview-of-the-national-pension-system">Overview of the National Pension System</h2> <p>The NPS is a contributory pension scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System Trust. It was introduced for central government employees in 2004 and extended to all citizens in 2009. Key structural features:</p>