All you need to know about New Pension Scheme

| June 25, 2017


NPS (National Pension System) is a defined contribution based Pension Scheme launched by Government of India to provide old age income, reasonable market based returns over long run & extending old age security coverage to all citizens.

It is based on a unique Permanent Retirement Account Number (PRAN) which is allotted to each Subscriber upon joining NPS.

Key features you should know:

1. Anyone between the age of 18 and 60 can open NPS account.

2. You do not have to be a salaried professional to open an NPS account.

3. There are two broad NPS models, for Government employees and All Citizens Model.

4. There are three assets classes viz. Equity (E), Government Securities (G) and Corporate debt (C).

5. The maximum allocation to Equity (E) is capped at 50% for subscribers under All Citizens Model. For Government subscribers, it is capped at 15%.

6. There are two investment options. Under Active Choice mode, you select the allocation to different asset classes E, C and G. The cap for equity investment still applies.

7. Under Auto Choice mode (lifecycle fund), equity exposure is automatically reduced as you move closer to retirement.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.


Category: News, NPS, Pensioners

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