Pension Fund Regulatory and Development Authority (PFRDA) Chairman Supratim Bandopadhyay has said that the National Pension System (NPS) has given more than 12 per cent returns during the last 12 years.
He said that any individual or stakeholder should start investing in this product early to get maximum benefit out of it. This return of NPS is more than double the current retail inflation rate.
Bandopadhyay said this while addressing the Confederation of Indian Industry (CII) Insurance and Pensions Summit ‘Indian Insurance Sector – Riding the Wave of Change’ here on Monday. PFRDA offers two pension schemes NPS and Atal Pension Yojana (APY).
Cheapest Investment
In NPS, you need to invest a minimum of Rs 1000 per annum. Apart from this, you can increase the investment in it anytime. According to Bandopadhyay, the biggest advantage of this is that in this you have to pay only one thousand rupees. There is no fixed contribution in this. Because of this, whenever you have some savings or extra amount, you can invest it in NPS as per your convenience.
Minimum and Maximum Returns
There are three investment options available in this. Equity means shares, government securities and corporate bonds. The returns under equity schemes have been more than 12 per cent during the last 12 years. Whereas in government securities it has been 9.9 percent. Whereas in corporate bonds it has stood at 9.59 per cent year-on-year despite some debt related developments.
Account can be opened like this
You can open NPS account in post office or bank. Many banks allow online account opening sitting at home. 500 rupees are needed to open an account in the bank. Whereas after that Rs 500 has to be deposited once. In this way, the total amount of one thousand rupees is considered as your minimum deposit of one thousand rupees.
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