NPS vs equity mutual funds: Both the National Pension System and equity mutual funds have their advantages and disadvantages. : NPS vs equity mutual funds: Both Equity Mutual Funds (MFs) and the National Pension System (NPS) are tools to create wealth in the long term. The choice between NPS and equity MFs depends on various factors, including your financial goals, risk tolerance, investment horizon, investment preferences, and tax benefits. Both NPS and equity mutual funds have their advantages and disadvantages.