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NPS

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NPS

NPS - National Pension Scheme

NPS is a retirement savings option regulated by the PFRDA, offering tax benefits, returns, and a range of investment options across equity, debt, and government securities.

The National Pension Scheme is a social security initiative by the Central Government. The NPS allows you to make contributions that will help you accumulate a corpus for retirement as well as give you a regular source of income post-retirement. On enrolment an individual is allotted a unique Permanent Retirement Account Number (PRAN).

Advantages of National Pension Scheme

Low-cost Investment

NPS is one of the most economical investment schemes available in the market.

Diversified Investments

A portion of your NPS investment is invested in equities which offers higher earning potential when compared to debt instruments

Tax Benefits

You can get tax benefits for the investments made in the National Pension Scheme under Section 80CCD.

Why Should You Invest in NPS?

The National Pension Scheme is one of the best retirement-focused investment options available in the Indian market. Here are some of the benefits of investing in this scheme that’ll help you get a better understanding of why you should invest in NPS.

You can invest in both equities and debt instruments as per your financial goals and risk appetite.

NPS offers tax benefits under the 80CCD (1) and 80CCD (2) which may help you lower your tax liabilities.

You can choose your preferred PFRDA-appointed fund manager and also change your fund manager if you wish to do so.

You can make partial withdrawals under Tier-I account.

Tier-II NPS account is an investment account where there are no restrictions on the number of deposits and withdrawals.

Your investment positions in equities decrease as you age, as per the National Pension Scheme conditions, which helps you avoid unwarranted risks.