National Pension Scheme
It’s never too early to think about retirement planning
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Under the NPS, all individual contributions are pooled into a pension fund. The fund is then invested into diversified portfolios comprising of government bonds, bills, corporate debentures and shares by PFRDA regulated professional fund managers as per the approved investment guidelines.
There are four Asset Classes:
- Equity - Subscribers can invest upto 75% of their contribution here
- Corporate Bond – Subscribers can invest 100% of their contribution here
- Government Bond- Subscribers can invest 100% of their contribution here
- Alternative Infrastructure- Subscribers can invest up to 5% of their contribution here
The NPS scheme allows you to diversify your portfolio between equity and debt instruments and offers its subscribers two approaches to invest.
If you choose this option you can actively decide as to how the NPS pension wealth is to be invested across Asset classes namely; Equity (up to 75%), Asset Class C (100%), Asset Class G (100%) and Asset Class A (5%). You will be allowed to change your asset allocation twice in a financial year.
In this option, the investments will be made in a life-cycle fund. Here, the proportion of funds invested across three asset classes will be determined by a pre-defined portfolio (which would change as per age of subscriber). The equity exposure will automatically decrease as the age of subscriber increases.
There are three different options available within 'Auto Choice' -
- Aggressive – LC 75- Equity exposure up to 75%
- Moderate – LC 50- Equity exposure up to 50%
- Conservative – LC 25- Equity exposure up to 25%
There are 7 different Pension Fund Managers authorized by the PFRDA to manage the subscriber’s investments in the most efficient way. The Latest Returns by each of these seven managers are updated on a weekly basis. You can use this information as a base to decide which PFM you wish to select. Click here to check the latest returns
Your pension wealth on retirement would be
Lumpsum withdrawal at 60 years
Pension Wealth Invested
* Min 40% of Pension Wealth should be invested in life annuity
Any Individual who wants to get registered as a subscriber and wants to open a Permanent Retirement Account (PRA)(Tier I) in NPS would submit the duly filled form (Composite application form for subscriber registration) with other supporting KYC documents to one电竞(新疆)在线登录 securities Ltd.
Application form for registration for NPS can be downloaded from the www.hdfcsec.com website. You need to forward the duly filled subscriber registration form, photograph, 1st contribution cheque & self-attested KYC documents to one电竞(新疆)在线登录 securities corporate office at Kanjurmarg, Mumbai.
No there is no upper limit on Investment in NPS.