Invest in NPS
What is NPS?
National Pension System (NPS) is a 'Government of India' initiative with an objective of Development of a sustainable and efficient voluntary defined contribution Pension System in India. It is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
NPS provides a platform for savings to create a Retirement Corpus (Pension Wealth) through 3 baskets of investments i.e. Equity (E), Corporate Bonds (C) and Govt. Securities (G) commonly known as E, C & G.
Who can join NPS ?
Any citizen of India, whether resident or Non-Resident between 18-60 years of age can join the NPS.
Why should I invest in NPS?
NPS gives you the undernoted unique advantages which will help you built the best possible retirement corpus
- Additional Tax Deduction: Opportunity of Extra Tax Savings under Sec 80 CCD (1B) up to Rs.50000/- (This is applicable for investments in NPS only) and is over and above the Sec 80C limit.
- Lower Expense Ratio: NPS is perhaps the world's lowest cost pension scheme. The total recurring expenses inclusive of the Fund Management fee and all other handling and administrative charges would work out to be around to 0.21% p.a. The Lower Expense ratio would lead to HIGHER RETIREMENT CORPUS.
- Ensures Complete Portability: NPS account can be operated from anywhere in the country irrespective of employment and geography.
- Tax Efficient : The Retirement Corpus used for buying Annuity will be totally Tax-free.
- No liquidity before Retirement: Under Normal circumstances, No withdrawal is allowed before Retirement i.e. 60 Years of age. In a true sense this investment will prove to be the "REAL BUDHAPE KI LATHI".
- Flexibility: Subscribers have - i) Choice of Pension Fund managers (PFMs) ii) Choice of Investment mix iii) Choice of Life Cycle Fund is also available
What is the process of enrolling in NPS?
If you are an individual between 18 years to 60 years, you can contact any of branch offices / UTI Financial Centres (UFCs) and ask for NPS Applications Forms and additional information about NPS.
You will be required to undergo the following steps:
A. Fill up the NPS Application form with Black INK (NPS Application Form).
B. Documents to be attached along with the NPS Application Form
(i) Affix one colour photograph on the NPS Application Form
(ii) Proof of Address (ADHAR Card/ Bank Statement/ Voters ID/ Passport etc.) (iii) Identity Proof (PAN Card/ Driving Licence/ Passport)
(iv) Cheque drawn in FAVOUR of "UTI AMC Collection Account - NPS Trust"
How NPS is superior to other perceived Retirement Plans?
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National Pension Scheme