National Pension Scheme
National Pension Scheme (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees. It was opened to all sections in 2009. A subscriber can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
Top Performing NPS Schemes
By Trailing Returns
- Scheme Name
- NAV
- Trailing returns (in %)
- 1 Year
- 3 Year
- 5 Year
- Return Rating
- Risk Rating
- ICICI Prudential Pension Fund - Scheme A - TIER I
- 17.82
- 10.71
- 6.82
- 8.43
Most Consistent NPS Schemes
- Scheme Name
- NAV
- AUM
(Rs. Cr) - Return
Rating - Risk
Rating - Consistency
Category Average Returns
- Category Name
- Weighted Avg Return (in %)
- 1 M
- 3 M
- 6 M
- 1 Y
- Quartely Category Discrete Returns
- Yearly Category Discrete Returns
- Scheme G TIER II
- 1.50
- 2.58
- 3.63
- 9.97
- Scheme G TIER I
- 1.56
- 2.60
- 3.54
- 9.90
- Scheme Tax Saver TIER II
- 1.23
- 1.49
- 0.98
- 9.24
- Atal Pension Yojna
- 1.06
- 1.41
- 1.36
- 9.00
- Scheme - State Govt
- 1.07
- 1.37
- 1.36
- 8.98
FAQs on NPS
What is National Pension System (NPS)?›
Who can join NPS?›
Can a Non Resident Indian (NRI) join NPS?›
How do I join NPS?›
How can I find POPs near me?›
What are the documents needed for opening an NPS account?›
What is a Permanent Retirement Account Number (PRAN)?›
What are Tier-I and Tier-II accounts›
Can I have more than one NPS account?›
What is the minimum contribution in NPS?›
What will happen if I don't make the minimum contribution?›
Will the government also contribute to my NPS account?›
Who manages the money invested in NPS?›
What are the investment choices available in NPS?›
- 1. Active Choice: This option allows the investor to decide how the money should be invested in different assets.
- 2. Auto choice or lifecycle fund: This is the default option which invests money automatically in line with the age of the subscriber.
What are the investment options available under Active Choice?›
Can I change my investment choices?›
Can I change my scheme and pension fund managers?›
Can I have different pension fund managers and investment option for Tier I and Tier II account?›
What are the tax benefits available for NPS?›
- 1. An employee's own contribution is eligible for a tax deduction --up to 10 per cent of the salary (basic plus DA) - under Section 80CCD(1)
- 1. of the Income Tax Act within the overall ceiling of Rs 1.5 lakh allowed under Section 80C and Section 80CCE.
- The employer's contribution to NPS is exempted under Section 80CCD
- 2. Moreover, individuals can claim an additional deduction of up to Rs 50,000 under Section 80CCD (1B), which is in addition to Rs 1.5 lakh permitted under Section 80C.
- 3. A self-employed person can also contribute 10 per cent of his gross income under Section 80CCD (1) in NPS.
When can I withdraw money from NPS?›
Can I defer withdrawing the lumpsum amount at 60?›
What if I want to take the money out before I am 60?›
What happens to the money if I discontinue the scheme?›
What happens if the subscriber dies before 60 years?›
How do I withdraw the money from NPS?›
What are the documents to be submitted along with withdrawal forms?›
- 1. PRAN card (original)
- 2. Attested copy of proof of identity
- 3. Attested copy of proof of address
- 4. A cancelled cheque
What is an annuity?›
Who are the Annuity Service Providers?›
- 1. Life Insurance Corporation of India
- 2. SBI Life Insurance
- 3. ICICI Prudential Life Insurance
- 4. Bajaj Allianz Life Insurance
- 5. Star Union Dai-ichi Life Insurance
- 6. Reliance Life Insurance
- 7. HDFC Standard Life Insurance
What are the different annuity options offered by ASPs?›
- 1. Pension (annuity) payable for life at a uniform rate to the subscriber
- 2. Pension (annuity) payable for 5, 10, 20 years certain and thereafter as long as you are alive
- 3. Pension (annuity) for life with return of purchase price on death of the subscriber
- 4. Pension (annuity) payable for life increasing at a simple rate of 3 per cent
- 5. Pension (annuity) for life with a provision of 50 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber
- 6. Pension (annuity) for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber
- 7. Pension (annuity) for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber and with return of purchase price on death of the spouse.
How is the annuity income taxed?›
All about NPS
NPS equity funds offer single-digit returns in 1 year. Here’s detailed breakup
The National Pension System (NPS) saw varied returns among fund managers over the past year. DSP Pension Fund led with 14.82%, while SBI Pension Fund delivered a negative return of 2.79%, reflecting diverse performance across the sector.
Why financial investments, and not your cherished antique collection, will make for the best inheritance gift
If you are running a family business, do not assume that the children would be happy to continue the tradition, unless they are already involved in managing it. You may assume that well-meaning relatives will continue to run it and share the profits with your offspring. However, without you around, these assumptions may go wrong. If your children show no interest in the business, dispose of it and sell your share while you are alive.
NPS equity funds offer single-digit returns in one year
The National Pension System (NPS) helps an investor to save tax in several ways.
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The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
NPS equity funds offer upto 16% return in three years. Here are the details
National Pension System (NPS) equity funds have yielded up to 16% returns in three years. UTI Pension Fund led with 15.80%, followed by Kotak (15.58%) and ICICI Prudential (15.41%). Other top performers include HDFC, ABSL, LIC, and SBI Pension Funds.
Plan today, relax tomorrow: The benefits of NPS for your golden years
The National Pension System (NPS) is crafted to provide retirees with a steady financial foundation. It combines market-linked returns with appealing tax benefits under Section 80CCD. With two account types and a streamlined online platform, NPS simplifies retirement planning while ensuring long-term wealth growth.
NPS equity funds lose up to 15% in six months. Here is the breakdown
NPS equity funds have delivered negative returns of up to 15% over the last six months, with SBI, Max Life, Axis, UTI, and ICICI Prudential among the worst performers, according to Value Research.
Stock market downturn hits NPS portfolios. Should you tinker equity allocation?
NPS portfolios have been impacted by the stock market downturn, leading experts to recommend a balanced approach with investments also in debt or government securities. While young investors can maintain higher equity exposure, those above 50 should gradually reduce equity allocations.
Voluntary pension scheme for all on cards: Won’t be tied to employment, will be open for all
India is exploring a Universal Pension Scheme that is voluntary and contributory, aimed at offering social security to all individuals. The scheme will incorporate existing central pension programs to streamline processes, extend benefits to unorganized workers, and include traders and self-employed individuals for comprehensive coverage.
NPS equity funds offer single-digit returns in one year. Here are details
DSP Pension Fund Managers delivered a 19.52% return in the past year, managing Rs 573 crore in assets with 15,577 subscribers.
New NPS frauds lure subscribers with higher returns, complete withdrawal of NPS corpus and more; PFRDA cautions public
Pension related frauds: Pension Fund Regulatory and Development Authority (PFRDA) through a public notice has cautioned the general public about various types of frauds ongoing in their name like complete withdrawal, higher returns, etc. "Unscrupulous individuals/entities are duping the general public by offering fraudulent schemes in the name of PFRDA/NPS/APY."
5 Budget 2025 changes that can impact you
5 Budget 2025 changes that can impact you
NPS equity funds offer up to 20% return in one year. Here's a detailed breakdown
DSP Pension Fund led NPS returns with 20.03% in one year, followed by UTI (12.99%) and Kotak (10.70%). SBI Pension Fund had the lowest at 5.06%. NPS remains a tax-saving, high-return option.
Ulip tax, updated ITR, NPS Vatsalya and other Budget 2025 personal finance changes that can impact you
Budget 2025 has brought about changes to Ulips, tax on NPS Vatsalaya and for filing of updated income tax returns. Read our story to know how these changes will affect taxpayers.
Ahmedabad-based finance professional can save Rs 1.58 lakh tax by moving to new tax regime
Sudhir Kaushik of TaxSpanner.com tells readers how they can optimise their tax by rejigging their incomes and investments.
NPS equity funds offer up to 20% return in one year. Here are details
DSP Pension Fund Managers delivered a 19.52% return in the past year, managing Rs 573 crore in assets with 15,577 subscribers.
From NPS to home loan: Top tax expectations from Budget 2025
Ishita Sengupta discusses potential tax changes, including a higher standard deduction, increased exemption limits, and home loan benefits under the new regime. She also suggests a 25% tax slab to create a smoother progression between tax brackets.
Khan can retire early by balancing equity and debt allocation in NPS, hiking SIPs in index mutual funds
The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goal.
Data Sources: Mutual Funds, ETFs, and NPS data are sourced from Value Research
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