New Pension Scheme | How to invest in New Pension Scheme? | What are the benefits?

Not only the employees but even the people who crossed 18 years of age can join this pension scheme. The only thing is we have to invest Rs.500 every month and for every year we have to invest not less than Rs.6000.

• To join in this scheme, we have to visit Allahabad bank, Axis bank, Citi bank, ICICI bank, IDBI bank, IL and FCI, Kotak Mahindra Bank, LIC, SBI Union bank and its relative banks but only some of the recognized banks only offer these services.
• This pension plan is in three investment options E,C and G. coming to the equity (E) option we can invest more than 50% in index funds. In the credit risk bearing instruments (C) we can invest in the low risk level liquid funds, corporate debts and other things. Coming to the last option, government securities (G) can invest in any kind of state or central securities.
• If we do not invest in any of this option they automatically invest based on our age. For example, if we invest 20% in the G option for 35 years, it becomes 80% in 55 years.
• The fund managers of this pension plan are ICICI prudential, IDFC, Kotak Mahindra, Reliance Capitol, SBI and UTI.
• If the investor quit before 60 years, 805 of the pension fund is to be invested in the annuity and if the investor quit after 60 years he has to invest 40% in the annuity.
• As soon as we join in this scheme, the Permanent Retirement Account Number is issued and this scheme is look after by the Pension Fund Regulatory and Development Authority (PFRDA).
• Even NRI’s can invest under this scheme but the only thing is they must have an account with the bank.

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