All about NPS
NPS is the much talked about National Pension Scheme introduced in 2004, for government employees. It is now open to all Indian citizens as a retirement saving vehicle. This blog explores the instrument and provides insight into the working of NPS. The account details NPS has a Tier-1 account, which is the non-withdrawable retirement savings account and a Tier-II account, a mere savings account. You can open an NPS a/c online using Aadhar or PAN card. The minimum contribution is Rs.500 pm / Rs.6k pa. Every subscriber gets a PRAN# (Permanent Retirement Account Number). NPS has 3 classes of assets: E: Investments in predominantly equity market instruments. Maximum investment in this class is 50% of total contribution. C: Investments in fixed income instruments other than Government securities. G: investments in Government securities. Investment Choices NPS offers "Active Choice" & "Auto Choice" options to its subscribers. Under the Active choice, th