New Pension Scheme: Benefits and Features
Let us discuss the benefits of New Pension Scheme launched by the Government of India. It is regulated by a body called the P F R D A.
Definition: It is a scheme meant for stable but wise retirement planning where all members get to invest in Equity. They all get a Permanent Retirement Account.
Benefits: All investors get to invest in equity.
Mode: Investment can be spanned through entire lie.
Low cost: The cost of investment is very low. The fund management charges are low too.
Available to all: It is available to people from organized as well as unorganized sector.
Presence: It is present all over. Any person can open it in a swift and efficient manner.
Process: One can open it at 17 banks and 4 financial institutions.
Age: The age bracket for this scheme is from 18-55 years.
Low contribution: The contribution is as low as 500 rupees at any given point of time.
Variety of options: One can invest in equities. government securities and Corporate bonds.
Liquidity: The scheme has easy liquidity features.
Tax Benefits: The scheme falls under the particular category of Tax Exemption.
Smart Investing: After the age of 35 a person’s investment to equity starts coming down and the debt proportion increases to control the risk factors.
Good returns: The scheme is expected to generate good and decent returns. The scheme is expected to give returns in a range of 14 percent to 20 percent.
Conclusion: The scheme is meant for all. It is available even to people who are not working in the organized sector. It can be opened easily and gives option of smart investing to all classes of society. It is thus the future of great retirement planning.