Invest Now

To invest in NPS, you can choose any one from the Central Record Keeping Agencies (CRAs) offering this service

TYPES OF NPS ACCOUNTS

Tier 1 Account

A Tier 1 account is mandatory; it does not allow the account holder to withdraw from this account. A minimum contribution of Rs 1,000 is mandatory for the account holder. This account offers tax benefit to the user.

Tier 2 Account

A Tier 2 account is voluntary; it allows the account holder to withdraw any time from this account. A minimum contribution of Rs 1,000 is mandatory for the account holder. However, this account does not offer any tax benefits to the user.

AVAILABLE FUND OPTIONS UNDER NPS

  • Equity (Asset Class E)
  • Corporate Bonds (Asset Class C)
  • Government Securities (Asset Class G)
  • Alternate Investment (Asset Class A)

NPS WITHDRAWLS

As per PFRDA Regulations, different criteria are applicable depending upon the situation when the account holder chooses to exit from NPS.

Superannuation

When a subscriber reaches the age of superannuation / attaining 60 years of age, he or she will have to use at least 40% of his /her accumulated pension corpus to purchase an annuity that would provide a regular monthly pension. The remaining funds can be withdrawn as lump sum.

If the total accumulated pension corpus is less than or equal to Rs. 5 lakh, the NPS account holder can opt for 100% withdrawal of lump sum.

Pre-mature Exit

In case of pre-mature exit (exiting before attaining 60 years of age) from NPS, at least 80% of the accumulated pension corpus of the account holder has to be utilized for the purchase of an annuity that would provide a regular monthly pension. The remaining funds can be withdrawn as lump sum. However, the account holder can exit from an NPS, only after completing 5 years.

The subscriber can opt for 100% withdrawal of lump sum, if the total corpus is less than or equal to Rs. 2.5 lakh.

Death Of Subscriber

The entire accumulated pension corpus (100%) would be paid to the nominee / legal heir of the subscriber following the death of the account holder.

national-pension-scheme

National Pension System (NPS) is a PFRDA (Pension Fund Regulatory and Development Authority) initiative focused on retirement savings.

It is a Pension Scheme offered by the Government of India.

NPS is a voluntary contribution scheme that is market-linked and managed by professional fund managers.

It was first launched for government employees in January 2004. Later, it was opened to all employees in 2009.

INVESTING IN NPS

  • Regular saving during the tenure of an individual’s job
  • Regular income after retirement as pension
  • Retirement corpus
  • Market-based returns
national-pension-scheme
national-pension-scheme Indian citizens in the age bracket of 18 to 65 years
national-pension-scheme 5 years  
national-pension-scheme Annuity and lump sum withdrawals are allowed, subject to vesting criteria
national-pension-scheme Equity, Government Bonds, Corporate Bonds and Alternative Investments
national-pension-scheme A low-cost fee is levied on NPS with a cap on the fund management fee
national-pension-scheme New NPS accounts can be opened online by visiting websites of NSDL or KFintech
national-pension-scheme
national-pension-scheme Potential of high returns
national-pension-scheme Tax benefits
national-pension-scheme Professionally managed
national-pension-scheme Low-cost structure
national-pension-scheme Flexibility 

INVESTMENT APPROACHES TO NPS

Active Choice - Individual Funds

This approach to investing in NPS allows the subscriber to decide the ratio of contribution to be allocated across asset classes.

Asset Class Cap on Investment
Equity (E) 75%
Corporate Bonds (C) 100%
Government Securities (G) 100%
Alternate Investment (A) 5%

Auto Choice – Life Cycle Funds

Under this approach to investing in NPS, PFRDA has predefined the allocation across asset classes based on an individual’s age.

Life Cycle Funds Max Equity Investment
Aggressive Life Cycle Fund (LC 75) 75%
Moderate Life Cycle Fund (LC 50) 50%
Conservative Life Cycle Fund (LC 25) 25%

INVEST NOW

To invest in NPS, you can choose any one of the Central Record Keeping Agencies (CRAs) offering this service

NSDL Registration Subsequent Contribution SIP

© NIRMAL BANG. All rights reserved

Designed , Developed & Content Powered by Accord Fintech Pvt. Ltd.

Open an Account
FOR AFREE *DEMAT & BROKING ACCOUNT

Please fill in the details below

Close X

(Note - You will receive a call from our sales executive)