New Delhi, Oct. 21 -- Choosing between the National Pension System (NPS) and retirement-focused mutual funds involves more than comparing returns and tax benefits. For young investors, access to savings can become equally important as financial priorities change.

While NPS comes with restrictions on early withdrawals, retirement-focused mutual funds generally allow full redemption after their lock-in period. These differences can have significant implications for investors planning to buy a home, take a career break or meet other major expenses in their 30s.

Under the NPS All-Citizen Model, an investor exiting before completing 15 years and before reaching age 60 is generally considered to be making a premature exit.

Sumit Shukla, MD a...