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Fincash » Government Schemes » National Pension Scheme

What is NPS (National Pension Scheme)?

Updated on April 7, 2021 , 45219 views

NPS, also known as National Pension Scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). National Pension Scheme is a voluntary contributory scheme formulated by the Central Government with an aim of providing retirement Income to the citizens of India.

The NPS scheme targets to establish pension reforms and induce the habit of saving for retirement among people. Under National Pension Scheme or NPS, you can open a personal retirement account in which pension corpus can be saved during the working life. NPS Scheme is open to all but is mandatory for all government employees.

National-Pension-Scheme

National Pension Scheme Details

  • NPS scheme is specially formulated to meet the post-retirement needs of people. Pension plans ensure financial stability and security at old age when people usually do not have a regular income.

  • National Pension Scheme or NPS is one of such plan that gives us an opportunity to invest money and let the contributions grow over years, leading to good NPS returns. On retirement, you can use these savings to manage the needs and expenses of your family.

  • You can also use the accumulated pension wealth to purchase a life annuity product from any of the Life Insurance companies in India. Or you can also withdraw a part of your Earnings as a lump sum, depending on your age.

There are two types of pension accounts offered. These include-

NPS Tier I - This is a pension account that has restrictions on withdrawal.

NPS Tier II - This is a Savings Account that is withdrawable to meet financial contingencies. An active Tier I account is mandatory for opening an NPS Tier II account.

How to Invest in NPS Scheme?

One can invest in a National Pension Scheme through Points of Presence (POP). The investment can be allocated in 3 kinds of portfolios:

  • Asset Class E - Investment in predominantly equity market instruments
  • Asset Class C - Investment in Debt securities apart from Government Securities
  • Asset Class G - Investments in Government Securities

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National Pension Scheme Benefits

National Pension Scheme Tax Benefits

Investments upto INR 50,000 are liable for deductions under section 80 CCD (1B). Additional investments upto INR 1,50,000 are tax Deductible under Section 80C of the income tax Act. So, the investors looking for higher tax saving options can invest in an NPS.

Diversification of Funds in NPS Scheme

Another beneficial feature of the NPS scheme is that the investment can be diversified into three classes of assets including equity, fixed return instruments, and Government Bonds. Thus, investors have an opportunity to choose the allocation of assets based on their preference and risk appetite. Though, equity investments have a maximum limit of 50%.

NPS Schemem is Less Costly

The minimum amount required to invest in an NPS scheme is INR 6,000 annually. So, those having annual saving as less as INR 6,000 can easily invest in this scheme. Also, the fees charged by Fund Managers handling the funds is low, as it is a Government-backed scheme.

NPS Account is Managed by Professionals

The funds under the NPS are managed by experienced Fund Managers which ensures better investment management of funds that leads to good NPS returns.

National Pension Scheme: Tax Treatment on Withdrawals

Budget 2017 has introduced the following provisions:

Withdrawal Before Retirement

If a subscriber wants to withdraw from the scheme before the age of 60/or before retirement (other than the purpose specified for partial withdrawal), the amount withdrawn will not be taxable. However, the corpus that can be withdrawn is limited to only 20 percent of the accumulated wealth. And the balance 80 percent of the accumulated wealth has to be utilized for the purchase of annuity providing for the monthly pension to the subscriber. In such a case, the annuity income shall be taxable in the year of receipt as per the income tax slab rate applicable to the user.

In Budget 2017-18, the government had allowed partial withdrawal of 25 percent of the contribution made by a subscriber exempted from income tax.

However, this exemption is currently not available to non-employee subscribers. But, as per the Budget 2018, the Finance Minister Arun Jaitley has proposed to extend the benefits of tax-free withdrawal from NPS to non-employee subscribers also. Non-employee subscribers can also do tax-free withdrawal up to 40 percent of their maturity corpus from their NPS Account. The new rule will be effective from April 1, 2019.

Withdrawal on Retirement or at the Age of 60

At the time of retirement, withdrawal up to 40 percent the accumulated wealth is exempt from tax. However, the maximum corpus that you can withdraw at the retirement is 60 percent (of the accumulated wealth) and the balance, i.e., 40 percent needs to be utilized for the purchase of annuity providing monthly pension to the subscriber.

Withdrawal Upon the Death of the Subscriber

The corpus withdrawn in the event of the death of the subscriber shall be exempt from tax. The entire accumulated wealth would be paid to the legal nominee of the user. However, in case of government employees, the entire amount cannot be withdrawn. Purchase of annuity plan is mandatory by the nominee.

100% Withdrawal at the Time of Retirement or When Attaining 60

In case, the total amount in the NPS account is less than INR 2 Lakhs as on the date of retirement or attaining the age of 60, the subscriber (other than Swavalamban users) can avail the option of complete withdrawal.

1. Tata Retirement Savings Fund-Moderate

To provide a financial planning tool for long term financial security for investors based on their retirement planning goals. However, there can be no assurance that the investment objective of the fund will be realized, as actual market movements may be at variance with anticipated trends.

Tata Retirement Savings Fund-Moderate is a Solutions - Retirement Fund fund was launched on 1 Nov 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15.1% since its launch.  Ranked 2 in Retirement Fund category.  Return for 2020 was 15.1% , 2019 was 8.6% and 2018 was -3.6% .

Below is the key information for Tata Retirement Savings Fund-Moderate

Tata Retirement Savings Fund-Moderate
Growth
Launch Date 1 Nov 11
NAV (09 Apr 21) ₹37.5565 ↓ -0.04   (-0.11 %)
Net Assets (Cr) ₹1,334 on 28 Feb 21
Category Solutions - Retirement Fund
AMC Tata Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 2.33
Sharpe Ratio 0.72
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-60 Years (1%),60 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹12,607
31 Mar 18₹14,442
31 Mar 19₹15,283
31 Mar 20₹12,776
31 Mar 21₹18,867

Tata Retirement Savings Fund-Moderate SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹426,080.
Net Profit of ₹126,080
Invest Now

Returns for Tata Retirement Savings Fund-Moderate

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21

DurationReturns
1 Month -1.2%
3 Month 0.5%
6 Month 14.3%
1 Year 41.2%
3 Year 8.5%
5 Year 13.8%
10 Year
15 Year
Since launch 15.1%
Historical performance (Yearly) on absolute basis
YearReturns
2020 15.1%
2019 8.6%
2018 -3.6%
2017 38.8%
2016 6.7%
2015 7.7%
2014 55.1%
2013 2.6%
2012 20%
2011
Fund Manager information for Tata Retirement Savings Fund-Moderate
NameSinceTenure
Murthy Nagarajan1 Apr 174 Yr.
Sonam Udasi1 Apr 165 Yr.
Ennette Fernandes18 Jun 182.79 Yr.

Data below for Tata Retirement Savings Fund-Moderate as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash6.78%
Equity84.5%
Debt8.71%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 11 | HDFCBANK
7%₹95 Cr617,000
↑ 47,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | ICICIBANK
7%₹91 Cr1,515,000
↓ -158,000
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 30 Apr 18 | RELIANCE
7%₹90 Cr432,000
Infosys Ltd (Technology)
Equity, Since 31 Jul 20 | INFY
3%₹43 Cr345,000
↓ -37,000
7.27% Govt Stock 2026
Sovereign Bonds | -
3%₹42 Cr4,000,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 20 | 532215
3%₹38 Cr531,000
↑ 122,000
ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 18 | ITC
3%₹38 Cr1,886,000
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 30 Jun 20 | HCLTECH
2%₹31 Cr345,000
SBI Cards and Payment Services Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Sep 20 | 543066
2%₹30 Cr285,000
↑ 63,000
Dixon Technologies (India) Ltd (Technology)
Equity, Since 30 Apr 20 | 540699
2%₹29 Cr14,500
↓ -4,164

2. Tata Retirement Savings Fund - Progressive

To provide a financial planning tool for long term financial security for investors based on their retirement planning goals. However, there can be no assurance that the investment objective of the fund will be realized, as actual market movements may be at variance with anticipated trends.

Tata Retirement Savings Fund - Progressive is a Solutions - Retirement Fund fund was launched on 1 Nov 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.9% since its launch.  Ranked 6 in Retirement Fund category.  Return for 2020 was 14.4% , 2019 was 11.5% and 2018 was -6.1% .

Below is the key information for Tata Retirement Savings Fund - Progressive

Tata Retirement Savings Fund - Progressive
Growth
Launch Date 1 Nov 11
NAV (09 Apr 21) ₹37.1238 ↓ -0.05   (-0.13 %)
Net Assets (Cr) ₹977 on 28 Feb 21
Category Solutions - Retirement Fund
AMC Tata Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 2.5
Sharpe Ratio 0.69
Information Ratio -0.55
Alpha Ratio -6.28
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-60 Years (1%),60 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹13,004
31 Mar 18₹15,302
31 Mar 19₹16,083
31 Mar 20₹13,087
31 Mar 21₹20,311

Tata Retirement Savings Fund - Progressive SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579
Invest Now

Returns for Tata Retirement Savings Fund - Progressive

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21

DurationReturns
1 Month -1.6%
3 Month 0.8%
6 Month 16.3%
1 Year 46.8%
3 Year 8.8%
5 Year 15.6%
10 Year
15 Year
Since launch 14.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 14.4%
2019 11.5%
2018 -6.1%
2017 49.1%
2016 3.1%
2015 7.8%
2014 47.4%
2013 1.5%
2012 21.7%
2011
Fund Manager information for Tata Retirement Savings Fund - Progressive
NameSinceTenure
Murthy Nagarajan1 Apr 174 Yr.
Sonam Udasi1 Apr 165 Yr.
Ennette Fernandes18 Jun 182.79 Yr.

Data below for Tata Retirement Savings Fund - Progressive as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash2.67%
Equity97.33%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 11 | HDFCBANK
8%₹82 Cr533,500
↑ 47,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | ICICIBANK
8%₹78 Cr1,305,000
↓ -123,000
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 30 Apr 18 | RELIANCE
8%₹76 Cr363,000
Infosys Ltd (Technology)
Equity, Since 31 Jul 20 | INFY
4%₹37 Cr297,000
↓ -29,000
ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 18 | ITC
3%₹33 Cr1,613,000
Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 20 | 532215
3%₹33 Cr452,000
↑ 105,000
HCL Technologies Ltd Shs Dematerialised (Technology)
Equity, Since 30 Jun 20 | HCLTECH
3%₹27 Cr294,000
SBI Cards and Payment Services Ltd Ordinary Shares (Financial Services)
Equity, Since 30 Sep 20 | 543066
3%₹27 Cr249,000
↑ 60,000
Dixon Technologies (India) Ltd (Technology)
Equity, Since 30 Apr 20 | 540699
3%₹25 Cr12,500
↓ -3,474
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Aug 20 | TCS
2%₹23 Cr78,500
↑ 15,500

3. Tata Retirement Savings Fund - Conservative

To provide a financial planning tool for long term financial security for investors based on their retirement planning goals. However, there can be no assurance that the investment objective of the fund will be realized, as actual market movements may be at variance with anticipated trends.

Tata Retirement Savings Fund - Conservative is a Solutions - Retirement Fund fund was launched on 1 Nov 11. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 9.5% since its launch.  Ranked 7 in Retirement Fund category.  Return for 2020 was 11.8% , 2019 was 7.6% and 2018 was 0.8% .

Below is the key information for Tata Retirement Savings Fund - Conservative

Tata Retirement Savings Fund - Conservative
Growth
Launch Date 1 Nov 11
NAV (09 Apr 21) ₹23.5048 ↓ 0.00   (-0.02 %)
Net Assets (Cr) ₹164 on 28 Feb 21
Category Solutions - Retirement Fund
AMC Tata Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 2.4
Sharpe Ratio 0.8
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-60 Years (1%),60 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,590
31 Mar 18₹12,430
31 Mar 19₹13,062
31 Mar 20₹13,038
31 Mar 21₹15,434

Tata Retirement Savings Fund - Conservative SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859
Invest Now

Returns for Tata Retirement Savings Fund - Conservative

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21

DurationReturns
1 Month 0%
3 Month -0.1%
6 Month 5.5%
1 Year 17.5%
3 Year 7%
5 Year 9.2%
10 Year
15 Year
Since launch 9.5%
Historical performance (Yearly) on absolute basis
YearReturns
2020 11.8%
2019 7.6%
2018 0.8%
2017 15.1%
2016 10.6%
2015 6.4%
2014 20.6%
2013 5.7%
2012 10.9%
2011
Fund Manager information for Tata Retirement Savings Fund - Conservative
NameSinceTenure
Murthy Nagarajan1 Apr 174 Yr.
Sonam Udasi1 Apr 165 Yr.
Ennette Fernandes18 Jun 182.79 Yr.

Data below for Tata Retirement Savings Fund - Conservative as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash18.73%
Equity29.31%
Debt51.96%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.32% Govt Stock 2024
Sovereign Bonds | -
16%₹27 Cr2,500,000
7.27% Govt Stock 2026
Sovereign Bonds | -
6%₹11 Cr1,000,000
Power Finance Corporation Limited
Debentures | -
6%₹10 Cr100
6.84% Govt Stock 2022
Sovereign Bonds | -
6%₹10 Cr916,800
8.24% Govt Stock 2027
Sovereign Bonds | -
4%₹6 Cr550,000
8.20% Govt Stock 2025
Sovereign Bonds | -
3%₹5 Cr500,000
7.73% Govt Stock 2034
Sovereign Bonds | -
3%₹5 Cr500,000
Food Corporation of India
Debentures | -
3%₹5 Cr50
7.80% Govt Stock 2021
Sovereign Bonds | -
3%₹5 Cr500,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 11 | HDFCBANK
2%₹4 Cr26,500
↑ 2,000

4. HDFC Retirement Savings Fund - Equity Plan

The investment objective of the Investment Plans offered under the Scheme is to generate a corpus to provide for pension to an investor in the form of income to the extent of the redemption value of their holding after the age of 60 years by investing in a mix of securities comprising of equity, equity related instruments and/or Debt/Money Market Instruments.

HDFC Retirement Savings Fund - Equity Plan is a Solutions - Retirement Fund fund was launched on 25 Feb 16. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 17.4% since its launch.  Return for 2020 was 18.3% , 2019 was 5.2% and 2018 was -6% .

Below is the key information for HDFC Retirement Savings Fund - Equity Plan

HDFC Retirement Savings Fund - Equity Plan
Growth
Launch Date 25 Feb 16
NAV (09 Apr 21) ₹22.728 ↓ -0.03   (-0.14 %)
Net Assets (Cr) ₹1,382 on 28 Feb 21
Category Solutions - Retirement Fund
AMC HDFC Asset Management Company Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 2.73
Sharpe Ratio 0.94
Information Ratio -0.39
Alpha Ratio 1.56
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-60 Years (1%),60 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹13,002
31 Mar 18₹15,044
31 Mar 19₹15,752
31 Mar 20₹11,511
31 Mar 21₹20,394

HDFC Retirement Savings Fund - Equity Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579
Invest Now

Returns for HDFC Retirement Savings Fund - Equity Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21

DurationReturns
1 Month 0.2%
3 Month 8.2%
6 Month 30.9%
1 Year 71.1%
3 Year 10.1%
5 Year 15.9%
10 Year
15 Year
Since launch 17.4%
Historical performance (Yearly) on absolute basis
YearReturns
2020 18.3%
2019 5.2%
2018 -6%
2017 37.7%
2016
2015
2014
2013
2012
2011
Fund Manager information for HDFC Retirement Savings Fund - Equity Plan
NameSinceTenure
Shobhit Mehrotra25 Feb 165.1 Yr.
Chirag Setalvad25 Feb 165.1 Yr.
Anand Laddha21 Oct 200.44 Yr.

Data below for HDFC Retirement Savings Fund - Equity Plan as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash2.47%
Equity93.15%
Debt4.38%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 29 Feb 16 | HDFCBANK
6%₹89 Cr582,000
Reliance Industries Ltd Shs Dematerialised (Energy)
Equity, Since 29 Feb 16 | RELIANCE
5%₹74 Cr354,000
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 16 | ICICIBANK
5%₹69 Cr1,160,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 18 | HDFC
5%₹62 Cr245,000
Infosys Ltd (Technology)
Equity, Since 29 Feb 16 | INFY
4%₹61 Cr487,174
Larsen & Toubro Ltd Shs Dematerialised (Industrials)
Equity, Since 31 Mar 16 | LT
4%₹50 Cr350,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 20 | ITC
3%₹39 Cr1,900,000
State Bank of India (Financial Services)
Equity, Since 29 Feb 16 | SBIN
3%₹36 Cr920,000
↑ 240,000
Bajaj Electricals Ltd (Utilities)
Equity, Since 30 Apr 16 | 500031
2%₹34 Cr353,406
Cyient Ltd (Industrials)
Equity, Since 31 Oct 20 | CYIENT
2%₹28 Cr425,000

5. HDFC Retirement Savings Fund - Hybrid - Debt Plan

The investment objective of the Investment Plans offered under the Scheme is to generate a corpus to provide for pension to an investor in the form of income to the extent of the redemption value of their holding after the age of 60 years by investing in a mix of securities comprising of equity, equity related instruments and/or Debt/Money Market Instruments.

HDFC Retirement Savings Fund - Hybrid - Debt Plan is a Solutions - Retirement Fund fund was launched on 25 Feb 16. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 8.9% since its launch.  Return for 2020 was 10.4% , 2019 was 7.6% and 2018 was 0.7% .

Below is the key information for HDFC Retirement Savings Fund - Hybrid - Debt Plan

HDFC Retirement Savings Fund - Hybrid - Debt Plan
Growth
Launch Date 25 Feb 16
NAV (09 Apr 21) ₹15.4748 ↓ 0.00   (-0.03 %)
Net Assets (Cr) ₹113 on 28 Feb 21
Category Solutions - Retirement Fund
AMC HDFC Asset Management Company Limited
Rating Not Rated
Risk Moderately High
Expense Ratio 2.56
Sharpe Ratio 0.85
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-60 Years (1%),60 Years and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Mar 16₹10,000
31 Mar 17₹11,413
31 Mar 18₹12,166
31 Mar 19₹12,719
31 Mar 20₹12,897
31 Mar 21₹14,910

HDFC Retirement Savings Fund - Hybrid - Debt Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹376,357.
Net Profit of ₹76,357
Invest Now

Returns for HDFC Retirement Savings Fund - Hybrid - Debt Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 9 Apr 21

DurationReturns
1 Month 1.1%
3 Month 1.4%
6 Month 7.3%
1 Year 16.5%
3 Year 6.8%
5 Year 8.4%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2020 10.4%
2019 7.6%
2018 0.7%
2017 12.4%
2016
2015
2014
2013
2012
2011
Fund Manager information for HDFC Retirement Savings Fund - Hybrid - Debt Plan
NameSinceTenure
Shobhit Mehrotra25 Feb 165.1 Yr.
Chirag Setalvad25 Feb 165.1 Yr.
Anand Laddha21 Oct 200.44 Yr.

Data below for HDFC Retirement Savings Fund - Hybrid - Debt Plan as on 28 Feb 21

Asset Allocation
Asset ClassValue
Cash24.35%
Equity14.32%
Debt61.33%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.19% Govt Stock 2034
Sovereign Bonds | -
8%₹9 Cr1,000,000
7.57% Govt Stock 2033
Sovereign Bonds | -
7%₹8 Cr750,000
Vedanta Limited
Debentures | -
6%₹7 Cr70
L&T Infrastructure Finance Company Limited
Debentures | -
6%₹7 Cr65
Indian Railway Finance Corporation Limited
Debentures | -
5%₹5 Cr50
7.50% Govt Stock 2034
Sovereign Bonds | -
5%₹5 Cr500,000
6.79% Govt Stock 2029
Sovereign Bonds | -
5%₹5 Cr500,000
6.67% Govt Stock 2050
Sovereign Bonds | -
4%₹5 Cr500,000
State Bank of India
Debentures | -
4%₹5 Cr45
Shriram Transport Finance Company Limited
Debentures | -
2%₹3 Cr27,500

NPS Calculator

After the benefits, let’s learn how to calculate NPS.

Here's an illustration -

Parameter Credentials
Age in years 20
Monthly contribution INR 1,000
Total years of investment 40 years
Expected Return on Investment 10%
Total pension wealth INR 63,76,781
Percentage of corpus reinvested in annuity 60%
Amount for purchase of annuity plan INR 38,23,069
Expected annuity rate 6%
Monthly pension INR 19, 131
Withdrawal on maturity INR 25, 50,172

Use retirement calculator given below for better understanding-

Know Your Monthly SIP Amount

   
My Goal Amount:
Goal Tenure:
Years
Expected Annual Returns:
%
Total investment required is ₹6,659/month for 20 Years
to achieve ₹10,000,000
Invest Now

So, do not compromise your living standards in your advancing years, invest in a National Pension Scheme (NPS).

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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