The pension fund regulatory and development authority (PFRDA) the NPS regulator has released a draft proposal on implementing Systematic Lump sum Withdrawal (SLW) in the national pension scheme. The draft is open for comments/feedback until the 19th of Oct. This is an explanation of the proposed rules. Existing rules: After the age of 60, an…

A common misconception among investors is that the National Pension Scheme (NPS) schemes are passively managed like an index fund. This is incorrect. In this article, we discuss the investment policy of NPS Equity (E) schemes as approved by the pension fund regulatory and development authority (PFRDA). The norms can be found on the public…

I have invested in the National Pension Scheme (NPS) since 8th March 2010. This is a performance report of how the NPS invested has fared over the last 12+ years. We also compare the returns with EPF. Note: Kindly do not assume that I am recommending NPS instruments. My situation is quite different from most….

We discuss three changes that can make the NPS an attractive retirement solution. Let us face a simple fact: The only reason many investors use the NPS is because of the “extra Rs. 50,000” tax saving or reduction in taxable income to be exact. The biggest drawback of the NPS is its rigid exit rule….

Swaroop asks, “I am 30 years old and have recently started investing in NPS. Can you please explain how to calculate the pension that we would receive from NPS?”. The short answer is, it is not possible to accurately calculate NPS pension. Yes, we can make an estimate, but the result is likely to be…

I have been investing in the National Pension Scheme (NPS) since 8th March 2010. This is a performance report of how the NPS invested has fared over the last 11+ years. We also compare the returns with EPF. I have been part of the NPS since 2006. However, the NPS was not ready for investment…

This is a question that we have received several times in the last few months: Since NPS (National pension scheme) is a low-cost product, can we use it as an index fund. Typically people wish to use Tier II this way since it has no lock-in. A discussion. First, the basics. NPS Tier I and…

Here is how you can set up an NPS SIP using the new D-Remit deposit facility and get the same-day NAV on national pension scheme contributions. To ease the process of contribution to the National Pension System(NPS), the Pension Fund Regulator(PFRDA) has introduced a new mode of deposit facility called Direct Remittance(D-Remit) starting from October…

The finance ministry has notified the National Pension Scheme Tier II- Tax Saver Scheme, 2020 under section 80C for central government employees.

Considering how the NPS equity schemes have underperformed Nifty 50 and Nifty 100 total return indices, it is high time PFRDA mandates these “low cost” fund to passively track an index instead of classifying them as “active funds” that can invest in the Nifty, Nifty 100 universe.

The NPS has a portfolio management fee of 0.01%. There is an additional custodian fee of 0.0032% and various transaction fee applicable on the investment amount (much like an airline charging extra for the seat, leg space and food). Nonetheless, a fee of 0.01320% is not only enticing but also leads one to assume we…

After ten years of investing in NPS (tier 1, central govt scheme) this is how my investments have fared since March 2010.