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SIP vs NPS comparison: Which Gives a Higher Corpus on ₹15,000 Monthly Investment Over 20 Years?

Investing wisely today can secure a financially stress-free tomorrow. Among the most popular long-term investment options in India are Systematic Investment Plans (SIPs) and the National Pension System (NPS). But when it comes to investing ₹15,000 per month for 20 years, which option generates a higher corpus? Let’s analyze both with a comprehensive breakdown based on returns, tax benefits, liquidity, and retirement goals — all aligned with EEAT (Experience, Expertise, Authoritativeness, Trustworthiness) principles.

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What is SIP? & SIP vs NPS comparison

Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds. You invest a fixed amount monthly in equity or debt mutual funds.

Key Features:

• Flexible amount and tenure
• High liquidity
• Potential for high returns (especially equity funds)
• No lock-in (except in ELSS)

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What is NPS?

National Pension System (NPS) is a government-backed retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). It aims to provide financial security post-retirement.

Key Features:

• Long-term retirement planning tool
• Partial tax-free maturity
• Partial withdrawal allowed after specific tenure
• Mandatory annuity purchase at retirement

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Assumptions for Analysis

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Corpus After 20 Years

SIP at 12% CAGR

• Maturity Corpus: ₹99.91 lakhs
• Investment: ₹36 lakhs
• Profit: ₹63.91 lakhs

NPS at 10% CAGR

• Maturity Corpus: ₹91.98 lakhs
• Investment: ₹36 lakhs
• Profit: ₹55.98 lakhs

Verdict: SIP wins in terms of absolute corpus due to higher average returns and liquidity.

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Taxation Benefits

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Flexibility & Liquidity

• SIP: Offers full control. You can pause, stop, or switch funds anytime.
• NPS: Restricted withdrawals and mandatory annuity purchase reduce flexibility.

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Suitability

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Final Verdict: SIP vs NPS

Conclusion:
If your primary goal is wealth creation with flexibility, SIP outperforms NPS in terms of corpus and liquidity. But if you’re retirement-focused and want assured tax benefits, NPS is a solid, disciplined route.

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Expert Tip:

A hybrid approach can be optimal. Consider:

• ₹10,000https://vivekweb.com/ in SIPs for aggressive growth
• ₹5,000 in NPS for tax benefits and stable retirement income

This balances high returns with tax efficiency and retirement planning.