Your investment in NPS also qualifies for a host of income tax benefits. Investors can avail of up to ₹1.5 lakh tax deduction under Section 80C through NPS contribution. In addition, there is a deduction of up to ₹50,000 under Section 80CCD(1B).

NPS is a long term investment instrument to save for your retirement. So do not invest in NPS for its tax-benefits or short-term performance. While deciding to invest in NPS, apart from looking at the performance of various schemes, make sure to match your risk profile with the schemes on offer.