Amit Sethi
Pension funds offered by AMCs invest money in equities, debts, and other money-market instruments to ensure decent returns.
The SIP route offers ease, allowing investors to allocate a fixed monthly sum in small instalments, offering compounding benefits.
NPS invests in a diverse mix of equity and debt assets, allowing investors to build wealth while protecting investments.
Public Provident Fund (PPF), Employees' Provident Fund (EPF), and post office monthly schemes can also help build a retirement corpus.
Annuity plans usually offer four variants: immediate annuity, deferred annuity, fixed annuity and variable annuity.
These plans start paying the monthly pension immediately.
These plans provide monthly income after retirement, making them an ideal choice for working professionals and others.
A fixed annuity guarantees the return for a specified tenure.
The returns fluctuate based on market conditions, but they also have the compounding advantage.
Compiled By Himani Verma