What Makes NPS A Suitable Retirement Investment
Investors India|April 2019

For the starters, NPS is a retirement focused scheme regulated by a statutory body, Pension Fund Regulatory and Development Authority (PFRDA).

What Makes NPS A Suitable Retirement Investment

NPS is a defined contribution scheme i.e. what an investor accumulates and gets as a pension after retirement depends on how much s/he puts into the scheme. The return, therefore, is not guaranteed but depends on performance of underlying assets. What makes NPS stand out among other investment alternatives is its low-cost, easy accessibility and its added advantage of building a corpus through market-linked asset classes.

Anyone between the ages 18-65 can join NPS, with a minimum investment of Rs 1,000 a year after fulfilling the KYC requirements. One gets a Permanent Retirement Account Number (PRAN), which captures all the data including personal details and transactions. At the age of 60, the contributions stop, and one is allowed to withdraw up to 60 percent of the corpus while annuity starts on the balance 40 percent of the NPS corpus from any of the designated annuity providers.

The returns in NPS are linked to market performance and there are two options to manage funds – Active Choice and the Auto Choice. Under the Active choice, there are three fund options – E, C, G.

Denne historien er fra April 2019-utgaven av Investors India.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra April 2019-utgaven av Investors India.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA INVESTORS INDIASe alt
ASK THE EXPERT
Investors India

ASK THE EXPERT

Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida

time-read
3 mins  |
November 2024
How to Naturally Reverse Fatty Liver Disease
Investors India

How to Naturally Reverse Fatty Liver Disease

The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.

time-read
2 mins  |
November 2024
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Investors India

Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile

Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?

time-read
5 mins  |
November 2024
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Investors India

India will continue to enjoy benefits of a close US relationship and trade will continue to grow

Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?

time-read
3 mins  |
November 2024
Understanding Momentum Funds
Investors India

Understanding Momentum Funds

Momentum funds are a type of investment fund that focuses on companies experiencing positive momentum in factors such as earnings, revenue, and stock price movement.

time-read
1 min  |
November 2024
Risks and opportunities associated with Small Caps
Investors India

Risks and opportunities associated with Small Caps

Small-caps are a stock-picker’s paradise.

time-read
2 mins  |
November 2024
How to navigate your portfolio through bull market a
Investors India

How to navigate your portfolio through bull market a

Indian equities have been in a bull run for the past four years.

time-read
4 mins  |
November 2024
Choosing mutual fund schemes depending on your age to achieve life goals
Investors India

Choosing mutual fund schemes depending on your age to achieve life goals

The choice of mutual fund (MF) scheme might be influenced by one’s risk profile or age.

time-read
3 mins  |
November 2024
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
Investors India

Thematic Fund Or Sectoral Fund, Which Fund Suits You?

A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.

time-read
2 mins  |
October 2024
Be Kind To Your Kidneys
Investors India

Be Kind To Your Kidneys

The kidney is a vital organ in our body which is four inches long and two and a half inches in width.

time-read
5 mins  |
October 2024