Yes it's excellent investment with locking period and you can accept 15% return based on your risk factor, if you are young choose the aggressive plan you will end with good lump sum amount by the retirement
If you are looking for long term investment and your objective is to create sufficient corpus for your post retirement days, the suggested investment option is NPS.
NPS provides a maximum tax benefit of 1.5 lakhs under section 80C.
It is for govt. employees joining after 2004 but is not restricted only to government employees.
Advantages: Enables retirement planning/ helps in saving and investing regularly/ NPS provides diversification /The allocation is to be decided by the person himself.
It is tax efficient
Yes, NPS gives you an additional tax benefit but are you very sure that you will be fine keeping that money invested in NPS right till you turn 60 years of age and can only withdraw partially that too for specific reasons. Then thereafter at age 60, you need to compulsory opt for an annuity which is taxable too. Put all of these points together and you may need to think twice before investing in NPS.
You have not disclosed your profile like age, risk appetite, dependents etc. However, don't invest in the NPS only to save tax. The biggest disadvantage of the NPS is the maturity amount is taxable. If the maturity amount becomes tax free, you can think of it.
I will do.