A short presentation on NPS (National Pension Scheme) Presentation-1
NEW PENSION SYSTEM <ul><li>NEW PENSION SYSTEM (Also referred as NPS) a efficient contribution pension system in India. </l...
NEW PENSION SYSTEM <ul><li>All citizens of India are eligible for investing in NPS. </li></ul><ul><li>Typically the NPS is...
NEW PENSION SYSTEM <ul><li>Ideal age of an individual interested to invest in NPS should be between 18 to 60 years. </li...
NEW PENSION SYSTEM <ul><li>Minimum amount per contribution in NPS is Rs.500 </li></ul><ul><li>Minimum contribution per ye...
NEW PENSION SYSTEM <ul><li>Investing in the NPS </li></ul><ul><li>NPS offers 2 approaches </li></ul><ul><li>to invest in ...
NEW PENSION SYSTEM <ul><li>Active Choice –Individual Funds </li></ul><ul><li>This choice comes with 3 options to choose fr...
NEW PENSION SYSTEM <ul><li>Auto choice- Lifecycle Fund </li></ul><ul><li>An easy option for managing individual NPS invest...
NEW PENSION SYSTEM <ul><li>Auto choice- Lifecycle Fund </li></ul><ul><li>In the auto choice option ,the ratio of investme...
NEW PENSION SYSTEM <ul><li>Tax benefits under NPS </li></ul><ul><li>will be as per the </li></ul><ul><li>provisions of t...
Useful Links <ul><li>www.npscra.nsdl.co.in </li></ul><ul><li>www.pfrda.org.in </li></ul><ul><li>w ww.moneyexpo.in </li></u...
Thank you
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NATIONAL PENSION SCHEME-INDIA

NPS, A GOOD TOOL TO SAVE FOR YOUR RETIREMENT
Published on: Mar 3, 2016
Source: www.slideshare.net


Transcripts - NATIONAL PENSION SCHEME-INDIA

  • 1. A short presentation on NPS (National Pension Scheme) Presentation-1
  • 2. NEW PENSION SYSTEM <ul><li>NEW PENSION SYSTEM (Also referred as NPS) a efficient contribution pension system in India. </li></ul><ul><li>Broad objectives : </li></ul><ul><li>A) To Provide old age income. </li></ul><ul><li>B) Safe and reasonable market based returns over the </li></ul><ul><li>long term. </li></ul><ul><li>C) Extending old age security coverage to all citizens. </li></ul>
  • 3. NEW PENSION SYSTEM <ul><li>All citizens of India are eligible for investing in NPS. </li></ul><ul><li>Typically the NPS is categorized into </li></ul><ul><li>Individuals and central, state government </li></ul><ul><li>& </li></ul><ul><li>corporate employees. </li></ul>
  • 4. NEW PENSION SYSTEM <ul><li>Ideal age of an individual interested to invest in NPS should be between 18 to 60 years. </li></ul><ul><li>All the individuals who invest in NPS are allotted with PRAN (Permanent Retirement Account Number) </li></ul>
  • 5. NEW PENSION SYSTEM <ul><li>Minimum amount per contribution in NPS is Rs.500 </li></ul><ul><li>Minimum contribution per year is Rs.6000. </li></ul>
  • 6. NEW PENSION SYSTEM <ul><li>Investing in the NPS </li></ul><ul><li>NPS offers 2 approaches </li></ul><ul><li>to invest in your account </li></ul><ul><li>Active Choice </li></ul><ul><li>&& </li></ul><ul><li>b) Auto Choice-Lifecycle Fund </li></ul>
  • 7. NEW PENSION SYSTEM <ul><li>Active Choice –Individual Funds </li></ul><ul><li>This choice comes with 3 options to choose from. </li></ul><ul><li>E-option-”High return, High risk”, investments mainly in equity market instruments. </li></ul><ul><li>C-option-”Medium return, Medium risk”-investments mainly in fixed income instruments. </li></ul><ul><li>G-option-”Low return, Low risk”- investments completely in fixed income instruments. </li></ul>
  • 8. NEW PENSION SYSTEM <ul><li>Auto choice- Lifecycle Fund </li></ul><ul><li>An easy option for managing individual NPS investments. </li></ul><ul><li>Based on the individual age, the portfolio is pre-defined. </li></ul><ul><li>Eg: At 18 years of age the auto choice-portfolio comes with </li></ul><ul><li>“ E-class --  50%” </li></ul><ul><li>“ C-class --  30%” </li></ul><ul><li>“ G-class --  20%” </li></ul>
  • 9. NEW PENSION SYSTEM <ul><li>Auto choice- Lifecycle Fund </li></ul><ul><li>In the auto choice option ,the ratio of investment will remain fixed for all contribution till the individual reaches the age of 36. </li></ul><ul><li>Post age of 36, the weight in asset class in “E” and “C” will decrease annually &weight of “G” increases till the ratio turns to E:C:G::10:10:80 </li></ul>
  • 10. NEW PENSION SYSTEM <ul><li>Tax benefits under NPS </li></ul><ul><li>will be as per the </li></ul><ul><li>provisions of the </li></ul><ul><li>Income Tax Act,1961 as </li></ul><ul><li>amended from </li></ul><ul><li>time </li></ul><ul><li>to </li></ul><ul><li>time. </li></ul>Taxation
  • 11. Useful Links <ul><li>www.npscra.nsdl.co.in </li></ul><ul><li>www.pfrda.org.in </li></ul><ul><li>w ww.moneyexpo.in </li></ul><ul><li>Image source: getty images </li></ul>
  • 12. Thank you

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