NPS
The National Pension Scheme, commonly referred to as NPS, is a government-managed social security investment program designed to cater to employees across various sectors, be it private, public, or unorganized. Under this scheme, individuals have the opportunity to systematically invest a portion of their income. As they approach their retirement age, subscribers have the option to withdraw a portion of their accumulated funds, while the remainder is disbursed as a regular pension. The minimum investment threshold is as low as Rs 500, with no upper limit. Contributions to the NPS are strategically allocated into various securities, investment avenues, and the equity market, depending on the chosen scheme.
ETF
An exchange-traded fund (ETF) is a collective investment vehicle that functions in a similar manner to a mutual fund. Generally, ETFs are designed to mirror the performance of a specific index, sector, commodity, or other asset. However, what sets ETFs apart from mutual funds is their ability to be bought or sold on a stock exchange, much like regular stocks.