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If you want to create a big fund than a small amount for the future of your children, then the NPS Vatsalya scheme of the government can prove beneficial for you. In this scheme, if you deposit only ₹ 10,000 every year in the name of the child, then he can get a fund of up to Rs 11 crore till retirement.
The money deposited in this scheme is invested in government security, date and stock market. Know here the benefits of the scheme, the method of investment and the mathematics of returns …
What is NPS Vatsalya Scheme?
This is the new scheme of the Government National Pension System (NPS), which was launched in September last year. In the scheme, parents can invest in the name of a child under 18 years of age.
It is necessary to deposit at least ₹ 1,000 annually, there is no limit of maximum. As soon as the age of the child is 18 years, this account will be converted into regular NPS pension account.
Parents in the scheme can choose investment options for children according to their own. They themselves decide how much money is spent in equity, date or government bonds.
How can it become ₹11 crore fund?
If you deposit ₹ 10,000 (ie just ₹ 834 a month) every year in the name of a child, then you can gather so much funds when you continue investing in regular NPS for the age of retirement (60 years)….
Three options are available in the scheme
- Agressive- In this your money is invested in 75% equity. Therefore, it consists of more risk and returns.
- Moderate- In this, your money is invested in 50% equity. So it contains risk and returns moderate.
- Conservative- Your money is invested in 25% equity. Therefore, it has low risk and returns.
- Apart from this, you can invest in equity by choosing the option of active choice.
Qualification for investment in NPS Vatsalya Scheme
- In this scheme, any Indian whose child is under 18 years of age can invest. For this, the child must have a PAN and Aadhaar card.
- One has to invest a minimum of ₹ 1,000 annually. There is no limit to maximum. After 18 years the account will change to NPS Tier-1, KYC will have to update.
- If needed, after 3 years, you can withdraw a maximum of up to 25% money for studies, illness or disability.
Equivalence at the age of 18 years
- If the fund is more than ₹ 2.5 lakh, then an annuity (pension) will have to be purchased from 80%, 20% lump sum.
- If the fund is ₹ 2.5 lakh or less, then you can withdraw the entire money outright. The child will get the entire money if the child happens.
How to open NPS Vatsalya account?
NPS Vatsalya account can be opened in banks. Online sitting at home https://nps.kfintech.com/ Or an account can be opened on other enPS platforms.
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